Why is Polkadot overrated compared to Cosmos?

It seems a bit of a stretch to compare the 8th and 27th largest blockchains by market cap at press time. However, a closer look at Polkadot and Cosmos reveals some similarities. Above all, the focus of both is on bringing interoperability into the crypto ecosystem.

The renowned analyst Max Maher recently to compare These two blockchains use a number of indicators and come to surprising conclusions.

Rivals

Of course, a crypto field observer would predict that Polkadot wins easily, especially in terms of the number of user accounts.

However, in terms of the number of active accounts, Cosmos does not seem to be inferior to Polkadot and only has a 22% difference, despite Polkadot having a market capitalization many times higher than Cosmos.

“… Polkadot has more new addresses every day (3.5x) and more daily active addresses (1.2x) than Cosmos. However, Polkadot’s market cap is 5.5 times that of Cosmos, which suggests that Cosmos is undervalued compared to Polkadot or Polkadot is overvalued compared to Cosmos. ”

The source: Youtube

Which network is more valuable?

Maher also uses Metcalfe’s Law to determine the net worth of each project. By law, “the value of the network is proportional to the square of the number of nodes in the network”. In this particular case, the number of active users can be used as an alternative metric.

“But the network value according to Metcalfe’s law shows that Cosmos is 49% below the net value of Polkadot …”

The source: Youtube

Maher again draws the conclusion that either Cosmos is undervalued or Polkadot is overrated compared to each other.

According to the analyst, Polkadot is the overall winner in terms of growth rate, network fees and transaction volume. However, when analyzing comments on Reddit, Cosmos scores slightly better in terms of community engagement – even if the difference isn’t huge.

Interestingly, both projects appear to have similarities in terms of developer activity, according to the researcher.

Where to bet

At the time of writing, ATOM is trading at $ 27.49 and DOT is trading at $ 37.57. While ATOM is down almost 15% from last week and 1% in the last 24 hours, DOT is down 8.1% from last week and increased 4% in 24 hours.

One of the advantages of Polkadot is Kusama’s “canary” network for testing new features. Kusama can help identify issues, and therefore, polkadot seems like a safe bet for investors. Additionally, Polkadot’s Parachain auctions have also generated a lot of hype lately.

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Minh Anh

According to AMBCrypto

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