The crypto market has been on a rollercoaster for a while. It was the case until 2023 proved to be an unusually quiet year for the market.
The year witnessed cryptocurrencies like Bitcoin and Ethereum reaching unmatched stability, beating even gold and tech stocks. Despite the ongoing scuffle between the SEC and several crypto platforms, the industry is garnering mass adoption worldwide.
With ETH set to get an ETF approved in the US, even traditional traders are getting into crypto. However, given the sheer amount of options the users get, they are bound to be overwhelmed. One of the most common queries new and even veteran traders have is between two of the most popular cryptocurrencies, Ripple and Cardano.
Let’s see how a comparison between Cardano vs. XRP fares out in 2023.
Understand Cardano (ADA)
Cardano is a popular crypto that has been in the market since 2017. Cardano works similarly to Ethereum, allowing developers to build dApps powered by ADA.
However, unlike Ethereum, Cardano uses peer-reviewed data from academic reports to find the best opportunities. These prospects allow Cardano to be changed and adjusted for future success.
Besides this, Cardano makes use of the Ouroboros consensus system. The PoS (Proof of Stake) mechanism lets slot leaders earn ADA for verifying transactions. It gives miners an incentive to work while reducing the entry barriers for Cardano production.
Understand Ripple (XRP)
XRP, or Ripple, is one of the oldest cryptos that has been present since 2012. It was introduced as a system for seamlessly transferring fiat currencies. Now, financial institutions use XRP to conduct cross-border transactions. Here is how it works; a user from a different country converts any fiat currency to XRP and transfers it to another user. The other user converts the crypto back to the local fiat currency.
It facilitates an economical, safer, and quicker approach to transferring fiat currencies. Users can access the blockchain using unique nodes that get permission to validate activities across the network.
Ripple’s design bodes well with financial service providers as it focuses on simplicity by allowing regulated users to handle funds.
ADA and XRP Predictions for 2023
From an investment perspective, both ADA and XRP stand at a similar level. Both digital assets are trading below $1 over the long time, $0.25 and $0.50, respectively.
Currently, Cardano is trading 89% below its all-time high reached back in 2021. The crypto is priced at $0.2565 after being on a downward spiral for months. The ADA community has released the L2 scaling solution Hydra recently.
The solution is expected to expand Cardano’s transaction throughput, making it one of the quickest networks with 1 million TPS (transactions per second). Another reason behind positive Cardano predictions is the launch of Djed, its stablecoin.
Despite being introduced as an Ethereum competitor, Cardano lacks the DeFi ecosystem to compete with major networks. Thus, the network relies on updates like a privacy sidechain, Midnight. ADA can emerge as a profitable investment in 2023 if the technological updates go well.
As for XRP, the year has been quite noteworthy. The network made a miraculous comeback against the SEC in a lawsuit that seemed hopeless at one point. The SEC charged XRP with several federal lawsuits back in 2020, causing the network to lose almost 72% of its value.
After securing a partial win against the commission in 2023, XRP made a quick comeback in the market. The crypto is currently 88% below its all-time peak of $3.40. It is trading at $0.5057 with occasional ups and downs.
Brad Garlinghouse, the Ripple CEO, stated that US banks and companies are returning as partners after the SEC case’s settlement. The network also established a partnership with MoneyGram, a collaboration that was halted by the SEC case.
Given the comeback XRP is making, it is natural why traders are reevaluating their portfolio after assessing the Ripple (XRP) price prediction.
Key Differences between Cardano and Ripple
| Cardano | Ripple | ||
| Crypto | ADA | Crypto | XRP |
| Introduction | 2017 | Introduction | 2012 |
| Purpose | transaction support and dApp development | Purpose | transfer money across countries |
| Transaction Function | Smart contracts | Transaction Function | Transactions triggered by banks |
| What Influences Value | Demand and availability | What Influences Value | Demand and deflationary efforts |
| Maximum Supply | 45 billion | Maximum Supply | 100 billion |
| Transaction Time | Up to 20 minutes | Transaction Time | Up to 1-minute |
| Consensus mechanism | Ouroboros based on Proof of Stake | Consensus mechanism | Federated Consensus Mechanism |
Key Similarities between Cardano and Ripple
| Cardano | Ripple | ||
| Value | $0.2568 | Value | $0.5047 |
| Focus | Helping users find opportunities using a stable network | Focus | Simplifying payments for banks |
| Energy Use | Effective mining system | Energy Use | Using limited resources |
Which is the Winning Bet for 2023?
Both Cardano and XRP are struggling in the market despite being two of the most popular cryptocurrencies. While Cardano is trading 89% under its all-time high, Ripple is also trading 88% below its peak. The primary factors that can change everything for cryptocurrencies are partnerships, momentum, and upcoming updates.
Looking at partnerships, Ripple appears to be the better option among the two. According to Ripple’s CEO, the network is regaining partnerships with banks across the US. The network also has more momentum among the two. Having wrapped up the SEC case positively, Ripple is making a comeback in the market.
However, Cardano has several updates lined up for the coming months. The network is about to launch a sidechain, a stablecoin, and a new L2 scalability solution. If the execution goes well, Cardano is expected to gain more value than Ripple.
Conclusion
XRP and ADA are two of the most popular cryptocurrencies in the market. Ranked number 5 and number 8, both cryptocurrencies are fierce competitors. However, both assets suffered in 2023, trading 88% and 89% below their peaks. While Ripple has won its case against the SEC, Cardano is setting up multiple groundbreaking updates.
With an increasing demand for crypto among traders, both assets are expected to do well in the upcoming months. Ripple will bode well with new traders based on reputation and popularity alone. On the other hand, Cardano’s upcoming updates will make ADA a popular choice among experienced traders. Overall, Cardano is expected to be the better investment choice between the two due to its updates lined up for the coming months.
