Cardano (ADA) Set to Outperform Bitcoin (BTC) as Traders Look to Hedging Against Ethereum Merge: Coin Bureau
A popular crypto analyst says smart contract platform Cardano (ADA) is set to outperform Bitcoin (BTC) in the near term as traders look to hedge against Ethereum’s (ETH) upcoming move to proof-of-stake.
In a new video update, the Coin Bureau host tells his 2.1 million YouTube subscribers that he’s looking at ETH competitors as a hedge against The Merge in case the update doesn’t go as smoothly as planned.
“One of the ways I’ve personally hedged against something going wrong with Ethereum’s merger is to keep competing smart contract cryptocurrencies as part of my portfolio, and this includes Cardano’s ADA.”
According to Guy, ADA acts as a safeguard against the Ethereum merger, as Cardano itself will also be upgraded to the Vasil hard fork in September.
“It would certainly be a strategic move if Cardano improved its scalability around the time Ethereum transitions to proof-of-stake. This is because it would put Cardano in a perfect position to acquire users and investors if The Merge fails or simply does not meet the expectations of ETH holders.”
Guy says Cardano appears to be seeing gains relative to the top digital asset by market capitalization.
“ADA appears to be overdue for a rally against BTC on the weekly chart. This is because historically ADA has fallen against ETH for about eight weeks before seeing a multi-week rally. As you can see, ADA has fallen against ETH in about eight weeks and showing signs of a reversal.”
The host then speculates that Cardano could see a 50% price increase.
“Note that [appreciating against BTC] doesn’t necessarily mean a higher price for ADA in fiat terms, but ADA’s daily and weekly price action in fiat terms suggests it could see a 50% gain in the coming weeks.
But I must emphasize that this ultimately depends on whether the crypto market sees a short-term recovery. I should also note that Cardano’s Vasil hard fork will expose the project to the same kinds of issues that Ethereum may experience during the upgrade.
This is likely why other Ethereum competitors such as Solana appear to be on the verge of a major breakout against both ETH and USD.
ADA is changing hands at $0.452 at the time of writing, a gain of 1.5% on the day.
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