For crypto investors, it sometimes comes down to choosing between digital assets such as Dogecoin, Cardano, and the over 20,000 other coins in the space to invest in. It eventually comes down to the performance of each cryptocurrency and how much gains they can rack up for investors.
Dogecoin And Cardano: What To Invest In?
To possibly predict the performance of these two cryptocurrencies in the next bull market, looking at their previous performances can be helpful. Now, in the last bull market spanning through 2020-2021, there were impressive rallies from both assets, but Dogecoin had seen more returns.
In 2020, the price of Dogecoin had trended as low as $0.0011, but when billionaire Elon Musk began shilling the meme coin, it would rise as high as $0.78 at one point. Doing the calculations, this means that the price of DOGE had rallied about 70,000%. To put this in perspective, if $1,000 worth of DOGE was bought at its 2020 low, it would have been worth $700,000 at its peak.
On to Cardano, its native cryptocurrency, ADA, performed incredibly well in the 2021 bull market too. It was propelled forward by the anticipation surrounding the Alonzo upgrade that saw smart contracts debut on the blockchain.
ADA traded as low as $0.018 at one point in 2020 but by the time its rally was over, it touched a new all-time high above $3.10 in August 2021. This would translate to around 17,000% returns when calculated from its lowest and highest points during this one-year period. If $1,000 worth of ADA was purchased at its low point in 2020, it would be worth $170,000 at its ATH in 2021.
Given this, DOGE’s performance and returns were much better than that of ADA in the last bull market.
But What About Utility?
Despite Dogecoin’s impressive performance in the last bull market, it still pales in comparison to Cardano when it comes to utility. The latter’s smart contract capability which allows users to participate in the decentralized finance (DeFi) sector makes it one of the cryptocurrencies with the most utility in the market.
In this regard, Cardano wins out because its utilities establish it as a digital asset with a much higher chance of success over the long term. It also makes it a good investment for those looking to invest in the technology rather than just trying to make a quick buck.
In conclusion, DOGE’s performance is carried entirely by hype, meaning that it is more of a gamble to invest in the meme coin. Rather, ADA works better for investors who plan to stay in the market for the long term, as well as be a part of future advances in blockchain technology.