Before delving into the Cardano vs Solana rivalry, it’s worth noting their similarities. Both networks utilize Proof-of-Stake (POS) and feature smart contract functionality, much like Ethereum. Additionally, Solana (SOL) and Ethereum are still in early stages of adoption.
However, exploring their differences could offer valuable insights into which network holds the upper hand in the Cardano vs Solana battle. Key metrics such as TVL and market cap comparison can be an effective way to evaluate their current standings.
Cardano vs. Solana
SOL takes the lead on the TVL front
Solana (SOL) currently holds the lead in total value locked (TVL), with $270.21 million at press time. Meanwhile, Cardano’s (ADA) TVL has surged to $151.04 million, a significant recovery from its recent low of under $50 million in December last year.
Although Solana is ahead in TVL, it’s important to note that Cardano’s TVL is growing at a faster pace. However, Solana’s TVL has not experienced a significant rebound since the beginning of the year, which could undermine its lead. The latter was slightly above the $235 million mark.
The growth of Cardano’s TVL is mirrored in its higher market cap compared to Solana since the start of 2023. While Solana’s historic ATH was slightly above $10 billion during the November 2021 bull market, its current TVL reflects a more significant loss.
Overall, while Solana currently holds the lead in TVL, Cardano’s faster growth rate suggests that the Cardano vs Solana battle is far from over.
Cardano takes the lead on market cap
Looking at Solana’s bigger TVL loss, one might conclude that Cardano is the better option. However, such a decision would be biased because Cardano recently launched its smart contract capabilities in September 2021. This means that compared to Solana, which had a head start, Cardano did not have enough time to capitalize on organic growth.
Solana reached its weekly volume peak of $29.84 million at the beginning of May and dropped to as low as $1.25 million in one week.
On the other hand, Cardano’s weekly volume peaked at $11.56 million at the start of the month and hit its lowest point at $0.63 million. Therefore, Solana has been averaging higher volumes compared to Cardano.
While the analysis suggests that the Cardano vs Solana battle is evenly matched, the higher Cardano TVL indicates more confidence in its ecosystem compared to Solana. However, volume data favors more trading activity in the Solana ecosystem, and development activity has been quite evenly matched between the two.
Sum up
Although both networks are striving for more organic growth, the current market situation has been impeding their progress. Despite its late start, Cardano is making up ground. In contrast, Solana has demonstrated resilience despite experiencing several instances of network downtime.
However, investors seeking a definitive victor in the Cardano vs Solana battle may find it challenging to pick one. Opting for diversification may give investors an advantage in this scenario.