ADA Has 75% of SOL’s Market Cap, but Cardano Has Only 16% of Solana’s Daily Users, Says Bloomberg Analyst
Jamie Coutts, a distinguished crypto market analyst at Bloomberg Intelligence, has forged a highlight on the comparative market capitalization and person engagement ranges between two main blockchain platforms, Solana (SOL) and Cardano (ADA). In a submit on social media platform X, Coutts analyzed the present standings of SOL and ADA, that are ranked seventh and ninth by market cap within the crypto house, valued at $17.73 billion and $12.78 billion, respectively.
Coutts identified a notable discrepancy between the market cap and person exercise of the 2 cryptocurrencies. He emphasised that Cardano’s market cap is 75% that of Solana’s, but it solely has 16% of Solana’s every day customers. This remark means that Solana’s market share might improve if the development of person engagement continues to favor it over Cardano. Coutts implied that there’s extra room for progress in Solana’s valuation relative to Cardano, given the present person base metrics.
Coutts additionally commented on the broader cryptocurrency market, significantly Bitcoin’s efficiency. Regardless of a 100% rally in 2023, he famous the prevalence of ‘agency palms’ available in the market—buyers who’ve purchased Bitcoin a minimum of twice and haven’t offered. The variety of such Bitcoin addresses has reached an all-time excessive of 844,000, encapsulating over 3 million BTC or 16% of the circulating provide. This habits, in keeping with Coutts, is indicative of a powerful HODLing sentiment, the place long-term holders could drive up costs, particularly if a spot Bitcoin ETF is authorized by the SEC.
He additional elaborated on this by referencing his “Bitcoin Residents vs. Vacationers” chart, which contrasts the availability of Bitcoin final energetic over a 12 months in the past with that final energetic lower than a 12 months in the past. This evaluation supplies perception into the holding patterns and potential market pressures that might affect Bitcoin’s worth within the occasion of latest funding inflows from ETF buyers.
On 16 October 2023, Bloomberg Intelligence analyst Jamie Coutts mentioned the rising integration of conventional finance (TradFi) with blockchain know-how, significantly within the tokenization of real-world belongings. Coutts noticed a gradual rise in participation from conventional monetary establishments, with a notable uptick in rising markets. This development coincides with the heightened use of stablecoins in these areas.
Coutts reported a considerable bounce within the tokenization of US cash market funds, which have reached a valuation of $600 million, up from $100 million earlier within the 12 months. This displays a burgeoning curiosity in leveraging blockchain for conventional monetary belongings, offering a extra adaptable and decentralized method to asset administration.
Highlighting the important thing gamers, Coutts talked about that entities like Franklin Templeton Benji Investments and Wisdotree Prime are main the cost, having issued half of those blockchain-based belongings. Franklin Templeton selected each the Stellar and Polygon networks for asset issuance, whereas Wisdotree Prime opted for Stellar.
When it comes to community desire for asset issuance, Stellar has seen $321.2 million, Polygon $23.7 million, and Ethereum has the best with $345 million. These selections could also be influenced by elements akin to transaction prices, velocity, and community maturity.
Coutts concluded by emphasizing that whereas stablecoins are at the moment the first driver for blockchain adoption, different areas like NFTs, GameFi, and Actual-World Asset tokenization additionally current vital progress alternatives regardless of being in early growth levels.
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