The markets have been choppy for months, with more pressure on the downside. Consequently, at this time, investors are wary about investing, especially in the crypto markets. However, a new poll revealed that many of these investors are big on ADA.

Investors Choose ADA Over Bitcoin And Ethereum

London Real, in a poll, asked crypto Twitter the assets they were stocking up on in the market downturn. Users were given the choice of Bitcoin, Ethereum, Cardano’s ADA, and Others.

At the end of the poll, a whopping 77% of users voted for ADA. Surprisingly, only 11% said they were buying Bitcoin, generally touted as a store of value, rivaling Gold. Ethereum, on the other hand, came in last in the polls scoring only 5% of the votes, with Others having 7% of the vote.

It is worth noting that there has been a spike in interest in ADA in recent weeks. As reported by ZyCrypto on Saturday, Cardano whales have become significantly active. According to the report, about 160 ADA whales each purchased over $100,000 worth of ADA in just 6 hours on Friday, causing a 6% rise in the price of the Ethereum competitor.

The recent wave of accumulation is largely due to the highly anticipated Vasil hardfork expected in June. The upgrade is set to open the doors of the Cardano ecosystem to a flurry of DeFi applications. Consequently, several investors see a lot of upside potential for the altcoin after the hard fork.

At the time of writing, the asset is trading at the $0.58 price point. It is down 7.36% in the last 24 hours but up 5.81% in the last seven days. Currently, it is the 6th largest crypto asset by market cap, with $19.5 billion.

The Market Outlook

It is no longer news that various crypto industry participants are bracing for a potential bear market or what is known to many crypto enthusiasts as a crypto winter. Leading exchanges like Gemini and Coinbase have revealed plans to reduce their workforce to cope with this year’s losses.

The markets have continued to move within a tight range over the last couple of weeks, with Bitcoin stuck between the $29k and $32k price points. The correlation between the crypto and US stock markets has increased drastically and proven detrimental to the crypto markets when considering the present economic concerns and rate hikes by central banks to curb inflation.

However, despite the recent downturn, Galaxy Digital’s chief Mike Novogratz has said he expects crypto adoption to grow. Novogratz speaking at the Piper Sandler Global Exchange & Brokerage Conference on Wednesday, revealed that his company planned to keep expanding during the crypto winter, noting a bull run could be on the cards once the macroeconomic climate changes.

Solana’s competitor Ethereum is currently the second-largest crypto after bitcoin with a market cap of $462 billion. (Image Solana.com)

Etherum competitor Solana — a decentralized blockchain platform – is now the seventh-largest cryptocurrency in the world ahead of Dogecoin. Its SOL token has jumped 3.3X in price in three weeks from $43 on August 15 to $145, at the time of filing of this report, as per CoinGecko. On the other hand, its market cap has grown from $14.6 billion to $42 billion in comparison to the $40.5 billion market cap of Dogecoin. Solana’s market cap is currently $21 billion short of the $63 billion market cap of XRP – the sixth largest cryptocurrency. However, according to expert, Solana’s speed to process transactions and lower cost is yet to be proven in the real world. According to its website, the average cost per transaction is $0.00025. “Solana is the fastest blockchain in the world and the fastest-growing ecosystem in crypto,” it said.

“We are in a bull market where the government is printing notes like paper. This is creating significant value to fixed supply assets like Bitcoin and Gold. But having this flood of new users joining the community is hunting for cryptos to get rich. Solana is an alternative to Ethereum with faster speed and lower costs. But it still has to prove in the real world. A sudden growth like this is a dangerous situation, but at the same time, it’s an opportunity for traders,” Kumar Gaurav, Founder & CEO, Cashaa told Financial Express Online.

Also read: JPMorgan says cryptocurrency markets are ‘looking frothy’ with spike in retail demand at record pace

Solana Labs, the developer of Solana blockchain had announced a $314 million funding round in June led by venture capitalist Andreessen Horowitz and Polychain Capital. Alameda Research, Blockchange Ventures, CMS Holdings, others had also participated.

According to messari.io, Solana’s origin date back to 2017 when founder Anatoly Yakovenko published a whitepaper draft about a new timekeeping technique for distributed systems called Proof of History (PoH). He believed that the technique can automate the transaction ordering process for blockchains as one of the limitations to scalability in Bitcoin and Ethereum is the time need to reach a consensus on the order of transactions. Its competitor Ethereum is currently the second-largest crypto after bitcoin with a market cap of $462 billion. It is currently trading at $3,940, according to CoinGecko.

The suggestions/recommendations around cryptocurrencies in this story are by the respective commentator. Financial Express Online does not bear any responsibility for their advice. Please consult your financial advisor before dealing/investing in cryptocurrencies.