Cardano (ADA) was created in 2017 by mixing the Proof of Stake consensus algorithm with the UTXO model. This innovative approach led the way in the seek and experimentation for more scalable layer-1 blockchains.
Now positioned among the top 10 cryptocurrencies by market capitalization, Cardano’s history is living evidence of experimentation, resilience, and growth. One of the main criticisms of the project lies in the complexity of protocol development due to its unique characteristics, which directly affects the ecosystem rise in total value locked (TVL).
In this aspect, the account dApps On Cardano reported another major pullback for ADA’s TVL. Demonstrating that old challenges are still haunting this layer-1 growth despite its success in user adoption of the native token ADA and its respective market capitalization increase.
Interestingly, the highly competitive cryptocurrency market continues to grow, with promising projects surging as viable alternatives for Cardano. Solana (SOL) was a successful example of a newer and innovative competitor that conquered its ground, surpassing both ADA’s market cap and TVL.
3 Cardano competitors to watch in 2024
However, Finbold looked into lower ranks of capitalization indexes, picking three other Cardano competitors that could present similar growth if they are able to find optimal circumstances and a future increased demand.
Near Protocol (NEAR)
Near Protocol (NEAR) is a promising contender with an active development ecosystem focused on creating a more developing-friendly stage.
Currently, NEAR is trading at $1.71 with $1.71 billion of market capitalization, in the 38th position on CoinMarketCap’s index. Its native token peaked at $20.44 on January 16, 2022, and Near’s total value locked has continuously outperformed other chains.
Another relevant competitor in the space is Algorand (ALGO), focused on delivering an energy-efficient blockchain, attracting users and developers more concerned about the environment.
At the time of publication, ALGO is changing hands by $0.143 per token, with a $1.11 billion market cap, in the 52nd position on CoinMarketCap’s index. Algorand’s TVL is higher than Near’s, even with a lower price capitalization. Each has $63 million and $49 million of value locked in DeFi, respectively.
Notably, the lower cap among the 3 alternatives for Cardano is the one with the highest TVL. Fantom (FTM) is focused on delivering a high-scalable decentralized finance experience, registering $66 million of total value locked by press time.
Its native token, FTM, is trading at $0.33, with a market cap of less than a billion dollars in the 53th position on CoinMarketCap’s index.
All things considered, the above cryptocurrencies are in a fundamental position to possibly follow Cardano’s steps in 2024. However, taking into account that this sector can often be unpredictable and involves significant risks, there are no guarantees of massive growth for any of them.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.