With every currency, every asset, every share, every share, every metal, every bank and everything else, the market is in constant competition, even from strong rulers and new outsiders. This process is unlikely to slow down and is even more intense in the crypto space.

Unlike traditional markets, assets and investors must always be ready to battle for more profits and more cash flow as the cryptocurrency market is traded around the clock. So the competition naturally not only affects the small assets that come out, but also those that have been around for a long time.

The following research / analysis was carried out on 2 coins that have been around for some time. It’s worth noting that they’re not competing for a spot in the top 50, top 20, or top 10, but rather for third place in market cap.

ADA and BNB

Until a week or two ago, competition for the third largest property was at its height. In the short term, ADA even surpassed the BNB and was ranked 3rd. Nonetheless, both rose by leaps and bounds over the course of the year, increasing both price and market capitalization in a similar manner.

Due to many factors influencing this year, it is not possible to compare the growth rate with previous years. Over the course of the year (YTD), however, assets performed better than expected.

In early January 2021, the ADA price was just over $ 0.17. When the project was launched 3 years ago, it had to prove a lot and the community had a lot of expectations. When the phases of the Cardano Foundation’s roadmap are implemented, ADA will therefore receive more attention from investors.

In 5 months, the ADA rose from $ 0.176 to a previous ATH of $ 2,302 in May, and hit a new ATH of $ 2,967 in less than 4 months.

Price development ADA YTD | The source: TradingView

With this growth, ADA is trading 1,590% higher than at the beginning of the year. However, since then the price has fallen 33.71%. In fact, the price has been consolidating for over a month.

October 27th was its worst day in weeks, when ADA fell 10.52% to the USD 2.07 support and did not rebound much after that. Throughout October, ADA was stuck between the $ 2.28 resistance and the $ 2.07 support. However, this area of ​​support has now turned into a new resistance.

On the other hand, regarding BNB, although it only reached one ATH this year, its 5-month growth surpassed ADA’s 2 ATH and 10-month activity. With a YTD gain of 1,677.8 percent in May, this altcoin traded well above $ 600.

However, the May crash erased nearly 300% of profits and had a significant impact on assets.

While October was a difficult time for ADA, it turned out to be lucky for BNB. BNB price is up 42.32% and appears to show promising signs of a possible continuation of the uptrend.

BNB YTD price history | The source: TradingView

What brought the hype to Cardano?

Cardano’s journey is like a movie. Charles Hoskinson is a familiar face in the crypto space. At the same time, Cardano’s detailed, methodical plan with its built-in programming language and promise of a decentralized future have made people’s hopes higher than they imagined.

DeFi hasn’t really exploded on Cardano yet, but optimism about the Goguen release and the emergence of smart contracts had a positive impact on the coin through September.

The project promises to be a truly decentralized network, with plans to scale and decentralize the blockchain through future Basho and Voltaire updates.

The hype about NFT is also said to have shifted to Cardano after the introduction of the smart contract.

Surprisingly, however, ADA has lost traction since the appearance of smart contracts on September 12, 2021.

Both the average trading volume and the number of transactions fell rapidly, leaving Altcoins behind in the race for third place. In fact, there is almost no boost and ADA lags behind USDT, which currently ranks 6th in terms of market cap.

Number of ADA transactions | The source: In the block

How is Binance catching up?

One of the main reasons Binance has been successful is that it has achieved the position that Cardano leads. The biggest differentiator is now the function of the property.

While Cardano is the first blockchain to be developed using peer-reviewed research and an evidence-based methodology with an emphasis on future financial decentralization, Binance Coin is an exchange token.

As the largest exchange, it has a trading volume of billions of dollars. So it’s understandable that his token is working fine. Besides, Binance also has Binance Smart Chain (BSC).

The largest exchanges by volume in 24 hours | The source: Statista

BSC was set up with a focus on decentralized financing. Since its launch in August 2020, the chain has grown so quickly that it is now the second largest DeFi network in the world after Ethereum. With over 130 protocols and a total value of nearly $ 20 billion, the network currently dominates the DeFi space.

While Cardano wants to shine in this regard, Binance has dominated them.

Which platform has a better future?

While the question sounds simple, it’s actually quite complicated. To determine which has the better future prospects, it needs data on similar aspects of the network showing how they have fared so far, and that is DeFi.

Unfortunately, Cardano doesn’t have enough historical data to compare. Based on the network data alone, both are fine.

Binance recently announced that its US subsidiary is aiming for an IPO in 2024.

The capital inflow from the IPO will greatly improve the company’s scalability and thus Binance, BSC and BNB will all benefit.

On the other hand, Cardano is one of the few projects that has the potential to make DeFi accessible to everyone. Cardano has its own development team made up of many very experienced developers, led by Charles Hoskinson himself.

Second, future era of scalability, sharding, interoperability and ultimately pure decentralization will make Cardano an impressive blockchain.

Cardano’s roadmap is currently in phase 3 – Goguen (smart contract) | Source: Cardano

However, the platform has yet to prove all of this.

In addition, Cardano’s recent rollout of anti-money laundering analyzes (AML) is another step in the right direction. Although Cardano was ridiculed for essentially giving up decentralization due to his AML implementation, Hoskinson did refutation the:

“… These partnerships are very important. They provide clarity, a lot of business needs, and allow us to make better software for everyone, everywhere, and Cardano is more accepted or unmanaged in all regulated industries. “

Binance, on the other hand, has been investigated by the Internal Revenue Service (IRS) and the U.S. Department of Justice (DOJ). Officials investigating money laundering and tax violations sought information from people with a deep understanding of Binance’s business.

At that time, Binance founder Changpeng Zhao, aka CZ, quickly revealed the truth and posted tweet in response to the Bloomberg article:

“The title is boring if the article itself isn’t that bad. It describes how Binance works with law enforcement to tackle bad gamblers, but somehow turns everything upside down. “

Conclude

From the data alone, Cardano may look like a clown right now, but it has the potential to become a really strong horse one day. For Binance, they just need to keep up with the market to make sure they don’t fall behind.

With the $ 13 billion market cap gap in favor of the BNB at the time of writing, the race is likely not over yet.

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Minh Anh

According to AMBCrypto

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