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Grayscale suggests that Cardano may be undervalued

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The company Compared ADA to BTC and ETH, Grayscale rates the current price of Cardano altcoin as undervalued.

Grayscale rates Cardano

Based on the fundamentals and prices of other cryptocurrencies, a new Grayscale research report argues that Cardano may be undervalued. In particular, the company highlights the significant increase in both the use itself and the growth in the number of users over the last 12 months.

Cardano recently launched the functionality of smart contracts with the Alonzo upgrade, paving the way for decentralized applications to flourish. The update appears to elevate Charles Hoskinson’s blockchain as a direct competitor to other smart contract platforms such as Ethereum, Solana, Avalanche and Polkadot.

According to the report, Cardano currently settles a higher payment value per unit of market capitalization than its direct competitors, suggesting that the asset may be undervalued.

The cryptocurrency has settled more than $ 1.6 trillion in the total value of on-chain transactions over the past 12 months. It is a:

  • about 40% less than ETH
  • 50% less than BTC.

The market capitalization of ADA is about 80% lower than that of Ethereum and 90% compared to BTC.

Underestimation

You can find Cardano in the assets of Grayscale, the world’s largest digital asset manager. The company sees possible underestimation (and thus possible growth) also on the basis of the ratio market value and number of active users. The ADA currently has about 2.8 million of them a month.

The report states:

“Ethereum’s value per user is ~ $ 55,000, while Cardano is ~ $ 30,000. This may mean that Cardano has a lower value compared to its largest comparable crypto network, ETH, based on this particular metric. “

The network of the 6th largest cryptocurrency (recently the 3rd) currently processes more than 115,000 transactions per day. This is approximately a 13-fold increase since the beginning of 2021.

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