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Ramesh Kumar

Marketing Manager | Posted on | science-technology


ADA and MATIC: Comparison Guide

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Proof-of-stake projects have been becoming the norm in the last couple of years in the blockchain industry. With Ethereum shifting to this more sustainable consensus mechanism, the general understanding is that PoS chains are more sustainable and open the path to higher adoption. 

 

Consequently, as a crypto investor, you might be wondering which PoS network is the most promising in the long run. In this article, we compare ADA vs MATIC — two different projects with contrasting use cases. To achieve this, we will provide a fundamental analysis of their protocols and tokens and their 2022 price action. 

 

ADA and MATIC: Comparison Guide

Cardano Blockchain: How It Stands out from the Rest

The Cardano blockchain was launched in 2017 and has slowly become one of the most valued projects in the blockchain space. Over the years, this PoS project has added a huge number of features like staking, smart contract capability, and interoperability. 

 

Many consider Cardano as a direct competitor to Ethereum, as it aims to solve its scaling shortcomings. The network achieves this by using the PoS Ouroboros algorithm, which uses epochs to retain sustainability — meaning speedy and low-cost transactions. 

 

Cardano functions on a layered system, where each of the 2 layers completes a different task. The settlement layer takes care of transactions, while the computational layer treats smart contracts. 

 

The ADA token is used within its ecosystem for staking, deploying smart contracts and tokens, and gas fees. 

ADA Market Position in 2022

Just like most cryptocurrencies in 2022, Cardano has experienced a consequential market downturn. After reaching an all-time high of $3.10 in September 2021, it has been a downhill ride from there. ADA started at a price of $1.37 in January 2022 and has been steadily declining ever since. At the time of its all-time high, ADA was in the top 3 of cryptos by market cap. Currently, it holds the #8 spot with a price of $0.45 per token. 

Polygon Blockchain: How It Stands out from the Rest

Polygon is the most popular and successful layer-2 solution for Ethereum. This blockchain allows users to bridge their Ethereum on the chain and use it to access cheaper and faster transactions. Its EVM compatibility equally provides developers with ease of use and the ability to port already functional apps to the chain without issues. 

 

Consequently, where Cardano competes with Ethereum for a share of the market, Polygon complements it. Through its PoS network, it provides Ethereum developers with a side chain to execute transactions in a cost-effective way and reduce the impact on the chain.  

 

The MATIC token is used for both staking and paying for gas fees on the chain. 

MATIC Market Position in 2022

Like Cardano, Polygon has seen better days price-wise. MATIC reached a similar all-time high as Cardano in December 2021, going as high as $2.92 per token. However, the subsequent bear market has caused the price to fall drastically, and it’s currently trading at around $0.76. Considering the market conditions, this shows that MATIC managed to conserve its price much better than ADA. 

ADA vs MATIC: Comparison Table

 

 

ADA

MATIC

Max Supply

45,000,000,000

10,000,000,000

Total Supply

34,950,580,349

10,000,000,000

Circulating Supply

34,240,000,000

8,730,000,000

All-time High

$3.1

$2.92

2022 Low

$0.40

$0.34

Current Price

$0.45

$0.76

Consensus 

Ouroboros PoS 

PoS

Summing Up

Cardano and Polygon are inherently different blockchains. Polygon acts as a layer-2 chain and you can easily swap MATIC to ETH. Cardano is a standalone protocol that directly competes with the biggest Layer-1 protocols like Ethereum, Avalanche, and Solana. That being said, MATIC has shown that its price action is much more sustainable on the technical level. Wise investors should own both tokens in their portfolio, just in case one outperforms the other significantly.