Growth Outperforms Cardano, Bloomberg Analyst Reveals

Recently, Jamie Coutts, an analyst at Bloomberg Intelligence, brought to light a fascinating comparison that puts Solana ($SOL)’s user growth versus Cardano’s ($ADA) into perspective, generating optimistic expectations about the future of Solana’s digital asset .

Numbers are a vital element in understanding the tides that move the crypto market, and when it comes to ranking by market capitalization, Solana and Cardano are titans vying for investor favoritism. With a clear difference in market value, Solana, valued at US$17.73 billion, runs behind Cardano, which has a valuation of US$12.78 billion, occupying 7th and 9th position respectively in the crypto rankings.

#Cardano still commands a mkt cap of 75% of #Solana despite only having 16% of the daily users. This trade has more to go. https://t.co/gTus8xdplo pic.twitter.com/Tm8vBEGgmH

— Jamie Coutts CMT (@Jamie1Coutts) November 6, 2023

But what draws attention is not just the capitalization, but the level of user involvement in these networks. Coutts highlighted a discrepancy that could be decisive for the future: although Cardano’s market value is substantially higher, it only has 16% of daily users compared to Solana. This data suggests that, despite the smaller capitalization, Solana has attracted a more active and engaged audience, a positive sign for the growth of its community and market potential.

Beyond the immediate scenario, Coutts did not fail to mention the general trends in the crypto market, with a special look at Bitcoin. Despite the market experiencing a notable recovery, the analysis revealed an increase in so-called “steady hands” – those investors who not only bought Bitcoin but also refuse to sell it, reflecting “HODLing” behavior that may signal an inclination for even greater appreciation.

We can see this behavior playing out in my Bitcoin Residents vs. Tourists chart i.e.

Supply Last Active > 1Yr + vs. Supply Last Active < 1Yr #glassnode

2/2 pic.twitter.com/6QaQIxVOnh

— Jamie Coutts CMT (@Jamie1Coutts) November 6, 2023

Delving deeper into Bitcoin retention analysis, the contrast between “HODLing Bitcoin”, those whose assets have not been moved in over a year, and “Tourists”, who have moved their assets more recently, helps illustrate the dynamics of supply and demand that could influence the price of Bitcoin, especially given the possible approval of a spot Bitcoin ETF by the SEC.

As eyes remain on potential revolutions in the cryptocurrency landscape, this analysis from Coutts offers crucial insight into what is happening now and, perhaps, what is to come. For those who follow closely, these insights not only enrich the understanding of the current market, but also serve as guides for future investment strategies.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.