Cardano (ADA) Links to ETH Will See It Through a Crypto Winter

Winter in a spruce forest, spruce trees covered with fluffy white snow
Cardano (ADA) pegs to ETH will see it through a crypto winter – Photo: Shutterstock

Cardano (ADA) may be trading well below its all-time high, but the project’s strong ties to the Ethereum blockchain mean the altcoin’s price is well positioned to survive a crypto winter.

At the time of writing, cardano was trading just under 50 US cents, a far cry from ADA’s all-time high of $3.10 in September 2021, but in line with the broader cryptocurrency market.

However, the involvement of one of the ETH founders, Charles Hoskins, in Cardano should prove pivotal, according to a digital asset manager.

Andrew Durgee, head of Republic Crypto, the asset management arm of Republic and its Republic Crypto Fund, suggested that Cardano could benefit from the popularity of its founder.

“Cardano comes from [founder] Charles Hoskins, who is one of the founders of ETH and [Cardano] it’s one of the chains that he’s really focused on after Ethereum,” Durgee said in an interview with Capital.com.

“The original founders of Ethereum, outside of Vitalik [Buterin] they have really started to do their own thing and start to move away from Ethereum.

Vasil hard fork

“So those particular individuals have a lot of fanfare and interest.”

This is particularly critical ahead of the long-awaited upgrade to the ADA blockchain network called the Vasil hard fork later this month.

But Durgee indicated that he hopes Cardano will rely on bitcoin to help it get through the crypto winter, which, he added, differs from others because it occurs in a bear market.

“Most of the market has some kind of parity with Bitcoin, right?” he said. “It is going to follow the price of bitcoin more than anything else, and I am of the opinion that bitcoin is here forever.

“We believe that bitcoin doesn’t really need anything else to survive, but everything needs bitcoin to survive.

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Doubtful of DOGE

If Bitcoin were to fail, the party is over. If any of the others failed, Bitcoin would continue. So with that thought process, I think it’s going to be very difficult for the rest of the industry to disassociate from bitcoin.”

Durgee suggested that Dogecoin (DOGE) will not be able to grow on its own merits.

“Dogecoin itself looks more like a meme,” he said. “It doesn’t have much intrinsic value. It’s something that has a crowd-based interest.”

Durgee’s positive view of Cardano’s outlook was reflected in Thursday morning trading in Asia, as the price broke above $0.51.

The coin soared 11% in a 24-hour period, outperforming bitcoin, which gained around 7%, and ether (ETH), the currency backed by the Ethereum blockchain network, which rose around 6%, according to CoinMarketCap.

BNB and Dogecoin prices also continued to rise.

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