Cardano (ADA), the self-proclaimed “Ethereum killer”, could soon have a chance to showcase its capabilities relative to its more established rival. ADA has recently staged an impressive rally, now sitting at the $0.60 mark—just 14% shy of the critical $0.70 resistance level. With the overall crypto market closing out 2022 on an extraordinarily positive note, the stage appears set for ADA to potentially mount an attack on $0.70 and position itself for even greater gains in 2023.
Fueling optimism around Cardano is the network’s remarkably resilient Total Value Locked (TVL), which measures the overall market demand for a blockchain. Despite a minor pullback from its $444 million all-time high notched last week, ADA’s TVL remains highly robust at over $425 million. This suggests an ecosystem that continues maturing in terms of developer and user adoption.
Cardano developers have recently rolled out capabilities like multi-asset support and smart contacts aimed directly at competing with Ethereum. The durability of ADA’s TVL levels implies investors may be gaining conviction in Cardano’s roadmap to address Ethereum’s shortcomings related to scalability, transaction fees, and energy usage.
Adding momentum was last week’s over 11% ADA price gain, compounding already substantial gains over the preceding weeks. Buoying prices have been strengthening demand levels between the current $0.60-$0.61 zone and $0.545. ADA maintaining this critical support could enable a breakout past $0.70, opening the door to retesting the psychologically important $1 threshold in 2023.
In all, Cardano appears to have strengthened its foundations substantially leading up to what many anticipate will be a massively bullish year for cryptos. If ADA’s developers continue delivering on their promises of lower costs and greater scalability, its “Ethereum killer” label could soon be put to the ultimate test. The coming 14% rally to $0.70 could simply be the spark needed to ignite Cardano’s engine for an incredibly breakout year in 2023. All eyes are on ADA to showcase if it truly has to goods to compete with the cream of the crypto crop in fulfilling its lofty ambitions.
