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The most awaited event of the year is about to take place as the Cardano Alonzo hard fork is about to be activated. The arrival of smart contracts on the Cardano network will be the first step in a major market revolution. If it delivers according to expectations, it will send shock waves through the encryption space due to its capabilities.

But the question here is how severely it can affect its rival, Ethereum, and how do investors react?

Cardano, Ethereum, and the future of smart contracts

With the arrival of the Alonzo Hard fork on September 7th, it’s only natural that investors and developers alike are excited. However, during the testing of the smart contract, users noticed some major concurrency issues which raised doubts in their hearts.

However, when comparing Cardano and Ethereum, it becomes clear why there is a strong possibility that the former will outperform the latter.

An added advantage of ADA here, is that the network is already capable of processing more transactions per second (250 TPS at the moment) than Ethereum’s 15 TPS. Not only that, but it also has a lower gas fee. This will help Cardano grow faster, at a time when Ethereum fees are around $4.2 on average.

The average Ethereum transaction fee is $4.2 and the same for other tokens ranging from $13 to $40 | Source: EthereScan

Besides, smart contracts are launching at the best time since NFT has already captured the market. Volumes ranged around $64 million a day. This could lead to the transition of Ethereum-based NFTs to the faster and cheaper Cardano network.

OpenSea NFT Daily Volumes $64 Million | Source: Dune Analytics

Where do the investors stand?

The crash on September 7 scared investors as liquidations reached a 4-month high and open interest fell to a monthly low. But for now, they seem to have turned bullish again in anticipation of Alonso’s appearance. Buy orders exceeded expectations and sell orders by 12 million ADA ($29 million). This is despite the fact that prices were low, close to May levels.

Cardano buy orders dominate the market | Source: TradingView – AMBCrypto

If prices go up with the release of Alonzo, titles already profitable at 82% could see a spike in numbers and, of course, profits. However, in order to do so, Cardano must maintain its strong correlation with Bitcoin as it is currently (0.83). At the same time, the ADA should also keep its volatility as low as possible, below the current levels of 109%.

Profitable titles for Cardano | Source: TradingView – AMBCrypto

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