Fantom and Cardano are two of the most popular blockchain platforms in the world. Both platforms have their own native tokens, FTM and ADA, respectively. So, which token should you buy? Both platforms offer a variety of features and benefits, making them attractive to developers and investors alike.
While many consider Cardano and Fantom to be similar in their concepts, it is difficult to say which platform will be more successful in the long run. This article will show you the ADA vs FTM differences.
The best way to predict the future of these platforms is to continue to follow their development and track their performance. To achieve this, we will provide you with an overview of their technology, and compare the features that set them apart. This should allow you to make an informed decision on which token might be a better choice for your particular portfolio.
Before we begin, lets take a glance at what this tokens are built on…
What is Cardano (ADA)?
Cardano is a third-generation blockchain platform that was founded in 2015 and went live in 2017. The platform is known for its scientific approach to development and its focus on scalability, security, and interoperability. Cardano uses a proof-of-stake consensus mechanism, which is more energy-efficient than the proof-of-work consensus mechanism used by Bitcoin.
What is Fantom (FTM)?
Fantom is a high-performance blockchain platform that was founded in 2018. The platform uses a directed acyclic graph (DAG) consensus mechanism, which allows it to achieve high throughput and low latency. Fantom is also EVM-compatible, which means that it can support Ethereum-based dApps.
Comparing Cardano and Fantom from an Investor’s Perspective
Tokenomics
- Cardano (ADA): ADA has a maximum supply cap of 45 billion tokens. The distribution of ADA has been carefully managed, with a significant portion allocated to the Cardano Treasury for future development and sustainability. The inflation rate of ADA is controlled through a mechanism called “Voltaire,” which allows the community to vote on proposals and fund projects.
- Fantom (FTM): FTM has a maximum supply of 3.175 billion tokens. The token distribution includes allocations for staking rewards, ecosystem development, and the foundation. The inflation rate of FTM is dynamically adjusted through the FTM Reward Model, which aims to maintain a stable token supply.
Market Cap
- Cardano (ADA): Cardano has a market capitalization of $10 billion as of now. It has fluctuated over time but has consistently been one of the largest in the cryptocurrency market. During the bull run of 2021, it peaked at $90 billion.
- Fantom (FTM): Fantom has a market capitalization of $760 million for now. During the bull run of 2021 it was above the billion dollar mark.
Volume
- Cardano: The current trading volume of ADA is $160,091,362, which makes its volume per market cap ratio 1.59%, indicating it is liquid enough to execute trades.
- Fantom: The current trading volume of FTN is $70,761,170, which makes its volume per market cap ratio 9.29%, which shows that its highly liquid and extremely large trades can be made very comfortably.
TVL Locked
- Cardano: Cardano’s DeFi ecosystem is still in its early stages of development, as TVL in it is roughly at $165 million.
- Fantom: Fantom is a more recent protocol; however, it is gaining traction in the defi race and has attracted a TVL of $110 million as of now.
Transaction Speed
- Cardano is able to handle about 250 transactions per second. This number should increase exponentially with upcoming updates and sidechain capability.
- Fantom lists a theoretical speed of 25,000 transactions per second. This makes it one of the fastest decentralized protocols available on the market.
Now let’s, take a good look at their use cases, which you will find are same as each other at their current stage.
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Use Case of ADA Token
- Payments and transactions:
ADA can be used to make payments and transactions on the Cardano blockchain. This includes sending and receiving funds, as well as paying for goods and services.
- Staking:
ADA can be staked to earn rewards. Staking is the process of locking up your ADA tokens to help secure the Cardano network. In return, you will earn a percentage of the transaction fees generated on the network.
- Decentralized applications (DApps):
ADA can be used to power decentralized applications (DApps) on the Cardano blockchain. DApps are applications that run on a decentralized network, without the need for a central authority.
- Voting:
ADA holders can vote on proposals that affect the future of the Cardano network. This includes things like changes to the protocol, funding for new projects, and more.
Use Case of FTM Token
- Securing the network:
The FTM token’s primary use on Fantom is to safeguard the network via a Proof-of-Stake algorithm. Validator nodes must possess a minimum of 3,175,000 FTM in order to participate, and stakers must lock up their FTM. Epoch rewards and fees are given as payment for the service to both the nodes and the stakers.
- On-chain governance
FTM is needed for on-chain governance. Fantom is a fully permissionless and leaderless decentralized ecosystem, so every decision regarding the network is carried out by on-chain governance. FTM Stakeholders can vote on and propose changes and improvements in governance.
- Network fees
FTM is used for network fees, such as transaction fees, fees to deploy smart contracts or fees to create new networks. Without a minimum barrier, the network would be an easy target for spam, which would clog the ledger with useless information and eventually have a negative effect on the network’s performance.
- Payment
The Fantom network’s high throughput, instant finality, and low fees make the FTM token the perfect choice for sending and receiving payments. On Fantom, money transfers take around 1 second and cost about $0.0000001.
Comparing the Underlying Projects behind ADA and FTM
Now lets compare cardano and fantom blockchains
1. Consensus Mechanism
- Cardano: Cardano uses a proof-of-stake (PoS) consensus mechanism called Ouroboros. Ouroboros is a Byzantine Fault Tolerance (BFT) consensus algorithm that is designed to be more energy-efficient and secure than proof-of-work (PoW) consensus algorithms.
- Fantom: Fantom uses a PoS consensus mechanism called Lachesis. Lachesis is aBFT consensus algorithm that is designed to be highly scalable and secure.
2. Scalability
- Cardano: Cardano is designed to be scalable. The Ouroboros consensus mechanism allows for millions of transactions per second. However, Cardano is still under development, and its full scalability has not yet been realized.
- Fantom: Fantom is designed to be highly scalable. The Lachesis consensus mechanism allows for thousands of transactions per second. Fantom is also EVM-compatible, which means that it can support Ethereum-based dApps.
3. Security
- Cardano: The Ouroboros consensus mechanism is designed to be secure against Byzantine failures. Cardano is also a permissionless blockchain, which means that anyone can participate in the network.
- Fantom: The Lachesis consensus mechanism is designed to be secure against Byzantine failures. Fantom is also a permissionless blockchain.
4. Interoperability
- Cardano: Cardano is not yet interoperable with other blockchains. However, there are plans to make Cardano interoperable with other blockchains in the future.
- Fantom: Fantom is interoperable with other blockchains. Fantom is EVM-compatible, which means that it can support Ethereum-based dApps. Fantom is also connected to the Ethereum mainnet, which allows for interoperability between the two networks.
Which is the Better Investment?
It is difficult to say definitively which is the better investment, Cardano (ADA) or Fantom (FTM). Both platforms have their own strengths and weaknesses, and the best investment for you will depend on your individual investment goals.
If you are looking for a platform with a strong focus on security and interoperability, then Cardano (ADA) may be a good choice for you. If you are looking for a platform with excellent scalability and low latency, then Fantom (FTM) may be a better choice for you.
Ultimately, the best way to decide which platform is a better investment is to do your own research and compare the two platforms on your own terms.
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Disclaimer:
The information provided in this article is for informational purposes only and should not be considered financial or investment advice. It is important to conduct your own research, consider your risk tolerance, and consult with a professional financial advisor before making any investment decisions. The CryptoTimes is not liable for any loss incurred as a result of reliance on the information provided.
