- SOL exhibits rapid growth in DeFi and NFT sectors, outpacing ADA.
- Despite setbacks, SOL demonstrates resilience and stronger performance metrics.
- Investment in SOL presents higher potential for growth compared to ADA.
Solana (SOL) and Cardano (ADA) have been competing for a long time within the decentralized finance (DeFi) and non-fungible tokens (NFT) space. It is worth noticing that both blockchains offer strong contract capabilities that empower the projects on their blockchains.
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SOL and ADA have both taken a critical hit within the market as the bear market seethes. But once again, the crypto market is starting to see a positive rise, and the question of which is a better investment has emerged once again.
Despite its relatively recent entry, SOL’s growth in the DeFi and NFT space is quickly outpacing ADA as it offered smart contract compatibility first. At this point, SOL is catching up to networks like Ethereum (ETH).
At its peak, SOL’s total value locked (TVL) exceeded $10 billion compared to ADA’s $326 million peak. SOL is also the second largest NFT network after ETH, a development that has seen the Magic Eden NFT marketplace continue to compete for market share with the formidable OpenSea.
However, SOL is closely tied to FTX and Alameda, both of which exploded in 2022. This negatively impacted sentiment around the network, causing TVL and NFT trading volumes to decline at the same time.
Now, SOL’s TVL sits at $240 million while ADA is at $117 million, according to DeFiLlama. This puts the two networks within a very close margin, further narrowing the gap between them in terms of performance.
As previously stated, the crash of FTX and Alameda Research impacted SOL heavily, pushing its price down from above $34 to single-digit levels before a market recovery in early 2023 saw it reclaim the $25 level before falling back to $19.
In terms of price performance over the past year and how well both digital assets have performed compared to their all-time highs, ADA emerges as a better option compared to SOL. SOL is down 92.44% from its ATH price of $259, and ADA is down 89.42% from its $3.10 ATH.
However, on the other hand, both digital assets actually hit their cycle lows on the same day this year; January 7. But while ADA is up just 37.32% from its cycle low, SOL is up more than 98% from the same day. This highlights the higher interest in SOL, helping to drive its value much faster compared to ADA.
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