A popular crypto analyst says that smart contract platform Cardano (ADA) is set to outperform Bitcoin (BTC) in the short term as traders look to hedge against Ethereum’s (ETH) upcoming transition to proof-of-stake.
In a new video update, the host of Coin Bureau tells his 2.1 million YouTube subscribers that he views ETH competitors as hedges against The Merge in case the update doesn’t go as smoothly as planned.
“One of the ways I’ve personally been hedging myself against something going wrong with Ethereum’s merge is to hold competing smart contract cryptocurrencies as a part of my portfolio, and this includes Cardano’s ADA.”
According to Guy, ADA works as a hedge against the Ethereum Merge as Cardano itself is also due for the Vasil hard fork upgrade in September.
“It would be an admittedly 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 fails to meet the expectations of ETH holders.”
Guy says that Cardano appears primed to see gains against the top digital asset by market cap.
“ADA seems to be overdue for an appreciation against BTC on the weekly chart. This is because ADA has historically fallen against ETH for around eight weeks before seeing a multi-week rally. As you can see, ADA has been falling against ETH for about eight weeks and is showing signs of a reversal.”
The host then speculates that Cardano could see a 50% gain in price.
“Note that [appreciating against BTC] does not necessarily translate to 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 stress 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 sorts of issues Ethereum could experience during its upgrade.
This is probably why other Ethereum competitors such as Solana appear to be on the brink of a bigger breakout against both ETH and the USD.”
ADA is changing hands for $0.452 at time of writing, a 1.5% gain on the day.
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The post Cardano (ADA) Set To Outperform Bitcoin (BTC) As Traders Look To Hedge Against Ethereum Merge: Coin Bureau appeared first on The Daily Hodl.