Cardano’s (ADA) links to ETH will see it through a crypto winter
Cardano (ADA) may be trading way short of its all-time high but the project's strong links to the Ethereum blockchain mean the altcoin's price is well placed to survive a crypto winter.
At the time of writing, cardano was trading just shy of 50 US cents, a long way from ADA’s all all time high of $3.10 in September 2021 but in line with the broader cryptocurrency market.
However, the involvement of one of ETH’s founders Charles Hoskins in cardano should prove critical, according to one digital asset manager.
Cardano to US dollar
Andrew Durgee, head of Republic Crypto, the asset management arm of Republic and its Republic Crypto Fund, suggested that cardano could benefit from its founder’s popularity.
“Cardano comes from [founder] Charles Hoskins, who’s one of the founders of ETH and [Cardano] is one of the chains that he’s really been focused on post-Ethereum,” Durgee said in an interview with Capital.com.
“The original Ethereum founders, outside of Vitalik [Buterin], have really gone on to start to do their own things and start to move away from Ethereum.
What is your sentiment on ETH/USD?
Vasil hard fork
“So those particular individuals carry a lot of fanfare and interest.”
This point is particularly critical ahead of ADA’s long awaited blockchain network upgrade called the Vasil hard fork at the end of this month.
But Durgee indicated that he expects cardano to depend on bitcoin for help getting through the crypto winter which, he added, differs from others because it is occurring in a bear market.
Ethereum to US dollar
“Most of the market has some form of parity to bitcoin, right?” he said. “It's gonna follow bitcoin pricing more so than anything else, and I'm of the opinion that bitcoin is here forever.
“We are of the belief that bitcoin doesn't really need anything else to survive but everything needs bitcoin to survive.
Doubtful of DOGE
"If bitcoin were to fail, the party's over. If some of the others were to fail, bitcoin will continue on. So with that thought process, I think it will be very difficult for the rest of the industry to decouple itself from bitcoin.”
Durgee suggested that Dogecoin (DOGE) will not be able to grow on its own merits.
“Dogecoin itself seems more of a meme,” he said. “There’s not a lot of intrinsic value on it. It’s something that has an interest based on the crowd.”
DogeCoin to US dollar
Durgee’s positive take on cardano’s outlook was reflected in Thursday morning trading in Asia as the price surpassed $0.51.
The coin soared 11% over a 24-hour period, outperforming bitcoin, which gained about 7% and ether (ETH), the coin backed by the Ethereum blockchain network, which rose about 6%, according to CoinMarketCap.
BNB and Dogecoin’s prices also continued to rise.
Markets in this article
Related topics
