Cardano vs. Ethereum: The Complete Guide (2025)

Cardano and Ethereum Among The World’s Most Popular Layer-1 Blockchains

Cardano and Ethereum are two of the most talked-about cryptocurrencies in the world. While Cardano has a relatively small market cap among top-tier L1s, Ethereum has consistently been the second-largest crypto by market cap. 

In this article, we’ll compare Cardano and Ethereum, looking at a variety of factors, including their founders and history, tokenomics, scalability, network security, DeFi TVL, and real-world adoption.

In this article, we’ll discuss some of the key aspects of both the Bitcoin and Ethereum blockchains, including their founders and history, token and tokenomics, scalability and performance, architecture and consensus, programming languages, DeFi TVL, GameFi and SocialFi use cases, and NFT implementations. 

Founders and History 

Cardano

​Cardano was founded in 2015 by Charles Hoskinson, a co-founder of Ethereum, and Jeremy Wood. After departing from Ethereum due to differing visions—Hoskinson favored venture capital funding and a corporate structure, while Ethereum pursued a non-profit model—they established IOHK (Input Output Hong Kong), a company dedicated to developing blockchains for corporations, governments, and educational institutions. Cardano’s development has emphasized a research-driven approach, aiming to address scalability, interoperability, and sustainability challenges in the blockchain industry.​ 

Cardano’s unique layered architecture separates the settlement layer, which handles payment  transactions, from the computation layer, responsible for smart contracts and decentralized applications, enhancing security and scalability within its ecosystem.

The platform officially launched in 2017, introducing its native cryptocurrency, ADA, named after Ada Lovelace, a 19th-century mathematician recognized as the first computer programmer. In May 2021, Cardano’s market capitalization reached approximately $70 billion, making it the fourth-largest cryptocurrency at that time, and reached its current all-time high in September that year, at a market cap of more than $93 billion.

Since, however, Carano has become relatively less popular, often ranking among the top 20-30 cryptocurrencies by market cap, and has come under criticism due to project delays, a perceived lack of focus on user experience, and controversial statements made by Charles Hoskinson. 

However, Cardano has recently seen a resurgence in popularity, possibly due to the broader 2024 crypto bull run, as well as U.S. President Donald Trump’s stated plan to include it in a U.S. strategic crypto reserve. 

Ethereum

Ethereum was founded in 2013 by Vitalik Buterin. The project’s co-founders included future crypto heavyweights Gavin Wood, Charles Hoskinson, and Joseph Lubin, who would respectively go on to found Polkadot, Cardano, and Consensys. Ethereum, which launched its mainnet in 2015, was the first blockchain to offer smart contracts, meaning that decentralized applications (dApps) could be built on it rather than just permitting payments, as Bitcoin had. In this way, Ethereum revolutionized the crypto and blockchain industry by transitioning the focus away from digital payments to a global, decentralized internet. 

Like Bitcoin, Ethereum was initially a proof-of-work blockchain, requiring energy-intensive miners to validate transactions. However, in September 2022, Ethereum transitioned its consensus mechanism to proof-of-stake (PoS) in a process known as “The Merge,” reducing the blockchain’s energy usage by more than 99%. 

Token and Tokenomics 

Cardano (ADA)

Cardano (ADA) is the native currency of the Cardano blockchain. Cardano is capped at a maximum supply of 44.99 billion ADA, and, as of the writing of this article, had a circulating supply of 35.3 billion ADA. Cardano’s inflation rate is somewhat unclear, due to different analysts and outlets providing differing statistical data, but most estimates range between 2.5-4.15%. 

Ethereum (ETH) 

Ethereum’s native token is ETH. The ETH token is utilized for purposes including transaction fees, staking, and protocol governance. ETH does not have a maximum supply. As of the writing of this article, 120.73 million ETH were in circulation. New ETH is created to reward validators, but to reduce the total supply, a part of each transaction fee is burned by sending it to a designated address where it cannot be retrieved. As of early May 2025, the annual inflation rate for ETH was approximately 0.35%. 

Scalability and Performance

Cardano 

Cardano’s throughput and TPS have been mired in controversy. Data from Cexexplorer.io suggests that, in recent months, Cardano’s real-world TPS has hovered between 1-2. This would make it slower than even Bitcoin. 

Despite these slow real-world results, Cardano has shown promising results under testnet conditions. For example, a Doom gaming tournament held in December 2024 that was utilized to test Cardano’s (ADA) “Hydra Head” Layer-2 protocol saw the network record over 1 million TPS. 

For reference, the Cardano Layer-2 Hydra Head is designed to offload transactions onto off-chain channels known as “heads,” each capable of processing up to 1,000 TPS. According to the Hydra technical documentation, combining multiple heads can theoretically scale Cardano to handle hundreds of thousands of TPS.

Ethereum

Ethereum TPS, Jan. 2016 to Jan. 2025. Source: Dune Analytics. 

While it may have been the first popular blockchain for smart contracts, Ethereum’s main issue has been its speed and scalability. 

According to data from Blockworks and Dune Analytics, Ethereum, over the last several months, Ethereum has had an average TPS of around 13. Ethereum.org says that Ethereum blocks reach finality in around 15 minutes, though other sources claim finality is slightly faster, averaging about 13 minutes. 

These incredibly slow speeds have led to an explosion in Ethereum Layer-2s, which operate on top of the main Ethereum blockchain and inherit its security but use various methods to increase the speed and scalability of transactions. Popular Layer-2s include Optimism, Arbitrum, and Base, which are much faster than the Ethereum mainnet. 

However, Ethereum itself has a long-term plan called “The Surge.” Much like “The Merge” changed the blockchain by reducing its energy usage by 99%+,  “The Surge” would radically revamp parts of Ethereum’s network architecture to allow both the Ethereum mainnet and L2s to reach 100,000 TPS or more. However, it’s unclear exactly when this plan will be implemented. 

Network Metrics

Over the three-month period from early December 2024 to early March 2025, Cardano and Ethereum saw higher-than-average daily active addresses, a significant amount of daily transaction fees, and a large number of daily transactions. 

However, as we can see below, Cardano’s overall usage and fees are significantly smaller than Ethereum’s. 

Cardano 

• Daily Active Addresses: Ranges from 24,000 to 54,000 
• Daily Transaction Fees: Fluctuates between $9,000 and $42,100
• Daily Transaction Count: Ranges between 34,600 and 137,200 

Ethereum

• Daily Active Addresses: Ranges from 343,271 to 500,985 
• Daily Transaction Fees: Fluctuates between $588,083 and $12,671,443
• Daily Transaction Count: Ranges between 1,121,706 and 1,356,631

However, it’s essential to realize that this only looks at the Ethereum mainnet, not the vibrant system of L2s that have sprung up around the Ethereum ecosystem. For example, L2BEAT, a popular data aggregation website for Ethereum L2s, lists more than 146 L2s, including 59 rollups, 87 validiums and optimiums. Combined, Ethereum and these L2s had a daily transaction count of closer to 30 million over the last month. 

While there are two Cardano Layer-2s in the works, the previously mentioned Hydra and another L2, Mithril, these projects still appear to be in the development phase and aren’t quite ready for primetime. 

Architecture and Consensus  

Cardano 

ADA staking pool data, Mar. 11, 2025. Source: PoolTool. 

As mentioned earlier in this article, Cardano’s utilizes a traditional  proof-of-stake consensus mechanism called Ouroboros. 

As of early to mid-2025, Cardano had a network of approximately 2,772 active stake pools, according to PoolTool, with the highest concentrations found in the United States, Europe, and China. These stake pools collectively maintain the network’s security and process transactions across Cardano’s multi-layered architecture, which includes the Cardano Settlement Layer (CSL) for ADA transactions and the Cardano Computation Layer (CCL) for smart contract functionality. 

This decoupled structure, combined with Ouroboros’s consensus, is intended to enhance scalability and adaptability while ensuring that upgrades can be integrated seamlessly without disrupting the entire ecosystem. 

Ethereum

Ethereum is a monolithic, Layer-1, proof-of-stake network. Ethereum validators use the network’s native ETH token to pay network transaction fees, earn staking rewards, and vote on decisions. 

There are currently more than 1 million Ethereum validators around the world. An Ethereum validator is a Beacon Chain address with a balance equal to or greater than 32 ETH at the execution layer that is responsible for proposing and verifying blocks of transactions. 

In contrast, a node operator runs the infrastructure of the Ethereum network, helping manage nodes. According to Etherscan’s Ethereum Node Tracker, as of the writing of this article, there are currently 5,935 Ethereum nodes distributed around the world, with 60% of them in the U.S. 

ETH stakers by percentage stake, March 2025. Source: Dune Analytics. 

In the above graphic, we can see that Ethereum staking isn’t quite as centralized as Bitcoin mining, though Lido (27.4%), Coinbase (8.4%), and Binance (6.2%) are still dominant players. Unlike Bitcoin, where nodes vote on changes to the network, while miners validate transactions, Ethereum nodes both stake ETH and validate transactions.  

Programming Language 

Cardano 

Cardano’s core infrastructure and protocol logic are primarily developed in Haskell, a functional programming language known for its strong emphasis on mathematical rigor and formal verification. 

Beyond the node implementation in Haskell, some ancillary components and tools within the Cardano ecosystem may use other languages such as Rust or JavaScript (for instance, in wallet applications like Daedalus, which rely on Electron and React). 

Nevertheless, Haskell remains the foundation of Cardano’s software stack, particularly for the core features of its proof-of-stake protocol, Ouroboros, and for smart contract development with the Plutus language (a specialized language also derived from Haskell). 

Ethereum

Ethereum uses the Solidity programming language as its primary language. Solidity is similar to JavaScript, though there are slight differences. 

DeFi TVL 

Cardano 

Cardano TVL, Mar. 11, 2025: Source: Defillama. 

As of early March 2025, Cardano supported a variety of DeFi dApps and had nearly $340 million of DeFi TVL (total value locked). The top protocols by TVL included Liqwid, Miniswap, and Indigo. 

• Liqwid allows users to lend and borrow assets on the Cardano blockchain. Liqwid is governed by its community via the LQ token. 
• Miniswap is a Cardano liquidity provider that integrates high-yielding asset pool models from across the Cardano DEX ecosystem into one protocol. Miniswap is governed by the MINI token. 
• Indigo is a decentralized non-custodial synthetic assets protocol built on the Cardano blockchain. Indigo is governed by the INDY token. 

Ethereum

Ethereum TVL, Mar. 6, 2025: Source: Defillama. 

As of early March 2025, Ethereum supported a wide array of DeFi dApps and had over $51 billion of DeFi TVL (total value locked). The top protocols by TVL included AAVE, Lido, and EigenLayer. 

• AAVE is a highly popular decentralized lending protocol that allows people to borrow, lend, and earn interest on crypto, all without a middleman. AAVE is governed by the popular AAVE token. As of the writing of this article, AAVE had more than $16 billion in TVL, with most of that being on the Ethereum blockchain. 
• Lido is a liquid staking protocol allowing users to earn staking rewards on ETH. Lido used to allow staking for Polygon’s MATIC token, but this has been phased out. Lido is governed by the protocol’s native token, LDO. 
• EigenLayer was the first popular Ethereum protocol to introduce restaking. Restaking lets users stake the same tokens on the main blockchain and other protocols, securing multiple networks simultaneously. This increases staking rewards, though it can also increase slashing risk. EigenLayer is governed by the protocol’s native token, EIGEN. 

GameFi

Cardano

Chains of War NFTs from the JPEG Store. Source: The JPEG Store. 

Reliable info about games on Cardano can be hard to find, despite multiple websites listing a wide array of games in various stages of development. A few notable mentions include CyberVerse, Chains of War, and Cardinia: Epoch Wars. 

• CyberVerse: According to its official website: “CyberVerse is a free-to-play, pixel-based MMORPG currently available in beta on both the Ergo and Cardano blockchains. Players can explore Cyberia city, engage in a variety of mini-games, and earn CYPX.”
• Chains of War: Chains of War is a Free-to-Play loot-based adventure game set in the fantasy world of Tyrrha. Players can fight as Orcs, Elves, and or Humans and can acquire character-based NFTs from Cardano NFT marketplaces like the JPEG Store. 
• Cardania: Epoch Wars: Epoch Wars is a fantasy-based live multiplayer battle strategy game. Players fight for strategic resources, explore mysterious anomalies, earn experience and victory points while fighting as a part of seven unique factions, all vying for control of the world of Cardania. 

Ethereum

Decentraland, one of the most popular games on the Ethereum blockchain. 

In contrast to Bitcoin, which has limited GameFi adoption, Ethereum is one of the most popular blockchains for virtual games and hosts multiple popular GameFi dApps, including CryptoKitties, The Sandbox, and Decentraland. 

• CryptoKitties is a highly popular NFT-based collectible game. According to the official website, “CryptoKitties is a game centered around breedable, collectible, and oh-so-adorable creatures we call CryptoKitties! Each cat is one-of-a-kind and 100% owned by you; it cannot be replicated, taken away, or destroyed.” 
• The Sandbox is a viral land-based NFT game. According to the official website, “The Sandbox is a virtual Metaverse built on the Ethereum blockchain, where players can build, own, and monetize their gaming experience.” The Sandbox gaming ecosystem is governed by the $SAND token. 
• Decentraland is another popular virtual land game and a competitor to The Sandbox. According to the official website, “Decentraland is a social virtual world where you can connect, explore, and create. Meet new friends, join events, and make memories—no matter where you are.” Decentraland is managed by the Decentralized Foundation, which is governed by the $MANA token. 

Despite the popularity of games on Ethereum, speed and graphics issues have been a problem. In recent years, many games have shifted to Ethereum sidechains like Polygon, as well as Layer-2s and non-Ethereum Layer-1s. 

SocialFi

Cardano

There are very few active SocialFi networks on Cardano. As of March 2025, the most active social network on Cardano appears to be Cardano Spot, which claims to have over 35,000 community members. Other social networks on Cardano include SmartPlaces and SoMee Social. 

Ethereum

In contrast to Bitcoin, Ethereum is a popular chain for social dApps. Some of the top SocialFi apps on Ethereum include Friends With Benefits, Lens Protocol, and Roll. Friends With Benefits (FWB) is a token-based social network that blends community engagement with decentralized finance. By leveraging Ethereum’s smart contracts, FWB rewards members with native tokens for participating in exclusive events and collaborative projects. 

Lens Protocol offers a decentralized social graph that empowers users to fully own their digital identity and data. It enables creators to publish, interact, and curate content without intermediaries, ensuring secure and censorship-resistant social networking. Similarly, Roll facilitates the creation and management of social tokens, allowing influencers and communities to directly monetize engagement through blockchain-based rewards. 

NFTs 

Cardano 

Total sales volume and sales for Cardano NFTs as of Mar. 18 2025. Source: CryptoSlam. 

Cardano NFTs are a relatively niche phenomenon, as they only have a tiny fraction of the total sales volume of other major NFT blockchains, like Ethereum or Solana. In fact, Cardano NFTs are so unpopular that most sites don’t even host Cardano NFT data anymore. However, crypto data aggregator CryptoSlam reports that, since Cardano launched NFTs in March 2021, total sales volume has reached slightly more than $651 million. 

Ethereum

Total sales volume and sales for Ethereum NFTs as of Mar. 6, 2025. Source: CoinMarketCap. 

In contrast to Bitcoin, Ethereum birthed the NFT craze in 2017 when popular collections like CryptoKitties were launched. By 2022, NFT sales and transaction volumes on Ethereum had peaked. Famous sales at the height of the NFT craze included the $23 million sale of CryptoPunk #5822 in February 2022. 

With the crypto bull run of 2024 and early 2025 leading to massive surges in crypto prices, interest in NFTs (and NFT prices) has rebounded somewhat, though overall volume still isn’t anywhere near where it was back in 2021 and early 2022. 

Where to Buy Tokens 

If you want to participate in the future of either the Cardano or Ethereum blockchains, you can easily buy ADA or ETH from almost any centralized exchange. However, when it comes to DEXs, fewer support Cardano. 

Top Cardano DEXs include PancakeSwap, SundaeSwap, Windgriders, VyFinance, and Miniswap. 

Top Ethereum DEXs include Curve, PancakeSwap, Osmosis, Pangolin, Dexalot, DeGate, and THENA FUSION. 

FAQs

1. Cardano vs. Ethereum: Which is Better? 

Cardano and Ethereum are powerful and popular blockchain ecosystems, but each has benefits and drawbacks. Cardano, unfortunately, mostly has drawbacks, and the only major benefit is that Cardano generally has lower transaction fees. 

In contrast, Ethereum leads in almost all other areas, including active users, transactions, dApps, DeFi, NFTs, GameFi activity, and more. Therefore, while it’s hard to say which blockchain is “better,” most prefer Ethereum. 

2. What are the main differences between Cardano and Ethereum?

The main differences between Bitcoin and Ethereum lie in their speed, programming languages, and popularity. For example: 

• Cardano has an average of 1-2 TPS, while Ethereum has an average closer to 13 TPS. 
• Cardano primarily uses the Haskell programming language, while Ethereum uses Solidity. 
• Cardano has only around 170 dApps, while Ethereum has over 4,000 live dApps.  

3. What challenges do Cardano and Ethereum face?

Cardano mainly faces challenges regarding its declining popularity, unclear leadership, and small user and developer base. 

In contrast, Ethereum may face challenges due to its low speeds, high gas fees, and slow finality times. While Ethereum L2s have solved many of these issues, Ethereum is still facing lots of competition from faster, more scalable L1s like Solana. 

4. What are the pros and cons of the Cardano and Ethereum blockchains? 

Cardano and Ethereum both have various pros and cons, which we’ll detail below. 

Cardano Pros:

• Lower market cap (more growth possibilities)  
• Relatively low inflation rate (though higher than Ethereum) 
• Would be the lowest market cap coin to be included in a potential U.S. Strategic Crypto Reserve 

Cardano Cons: 

• Unpopular among the broader crypto community 
• Controversial founder is still involved in the project  
• History of project delays 
• Few developers know or use Haskell 
• Relatively few dApps compared to other major chains

Ethereum Pros:

• Largest blockchain for smart contracts, dApps, and DEXs 
• Largest blockchain for stablecoins (like USDC, USDT, and USDS)  
• Most secure proof-of-stake blockchain (at least in theory) 
• Largest developer community in blockchain 
• Most popular blockchain for NFTs 
• Thriving, fast-growing L2 ecosystem 

Ethereum Cons:

• Facing competition from Solana, Sui, and even Ethereum L2s 
• Speed issues, low TPS, and slow finality (though better than Bitcoin)
• High gas fees make transactions expensive 
• Less institutional investment (i.e., 21 U.S.-listed Ether-related ETFs as of March 2025, but many also hold BTC in much higher proportions)   

5. Which cryptocurrency is better for investors, ADA or ETH? 

While we can’t give specific investment advice, and all crypto investing is risky, many crypto analysts would suggest that ETH may be a more secure but lower-growth token due to its long history and relatively large market cap. In contrast, some analysts would suggest that ADA has higher growth potential due to its relatively smaller market cap as well as its potential to be included in a U.S. Strategic Crypto Reserve. 

Still, investors will likely experience volatility if they invest in ADA. In addition, ADA simply does not have anywhere near the active user base or number of developers that the Ethereum ecosystem has. Either way, investors should not place money into cryptocurrency investments they cannot afford to lose.