**Could ADA Become 2024’s Solana (SOL) After the Cardano Chang Upgrade?**
Cardano, like Solana, is a competitor to Ethereum for smart contract platforms, but it has faced criticism for perceived centralization. This criticism has contributed to Solana surpassing Cardano in market capitalization, with Avalanche (AVAX) also close behind. Solana’s fast network and low fees have fueled its market dominance, particularly in the meme coin space.
The upcoming Chang Upgrade aims to address Cardano’s speed issues by significantly increasing its blockchain’s throughput capacity, while also enhancing security measures to protect users from Web3 threats.
Here are five reasons Cardano could potentially mirror Solana’s success:
1. **Decentralization Focus:** Cardano, launched by Ethereum co-founder Charles Hoskinson in 2017, has faced criticism for being overly centralized. Past criticisms include concerns about centralization in governance and network design. However, with the Chang Upgrade, the controversial Genesis keys are being removed, leading to a more decentralized governance model.
2. **Bullish Price Predictions:** Analysts are optimistic about Cardano’s future. XForceGlobal, a well-known Elliot Wave theory trader, has set a $3 price target for ADA by mid-2025. Additionally, Crypto X analyst King Crypto Aryan has a more aggressive target of $75, contingent on Bitcoin reaching $500,000. These predictions highlight the strong bullish sentiment within the ADA community.
3. **Improved Network Speed:** Cardano’s blockchain already processes over 250 transactions per second (TPS), outperforming Bitcoin and Ethereum 1.0. The Chang Upgrade is expected to boost this capacity to over 1,000 TPS, putting Cardano on par with Solana, which reached 1,053 TPS in May 2024.
4. **Increased Network Usage and Staking:** Cardano has seen significant development and adoption. In Q4 2023, it led in development activity, and the number of smart contracts surged by 67% in March 2024. With 65% of ADA staked, Cardano demonstrates strong community engagement and economic security compared to Ethereum’s 28% staking rate.
5. **Whale Support for Chang:** Large investors are showing strong support for Cardano around the Chang Upgrade. In late August, whales accumulated 170 million ADA tokens in just 48 hours, indicating significant enthusiasm and investment in the upcoming changes.
If Cardano can successfully implement these improvements and attract more users, it has the potential to emulate Solana’s market success.
