Cardano may be undervalued, according to a <a href="https://grayscale.com/wp-content/uploads/2021/09/CARDANO_Building-Block.pdf" target="_blank" rel="nofollow noopener">study analysis</a> by Grayscale - the world's largest digital currency asset management considering its tremendous rise in usage over the previous year.
<h2>In Comparison To Etherum And Bitcoin, Cardano May Be Undervalued</h2>
Cardano may be undervalued in comparison to <a href="https://www.cryptoknowmics.com/news/bitcoin-vs-ethereum-whats-the-difference-according-to-grayscale-ceo/">Bitcoin and Ethereum</a>, according to Grayscale.

The study paper, which was released on Sunday, focuses on how the fundamentals of the third-ranked cryptocurrency have improved overall over the previous year.

Cardano's Alonzo update just included smart contract capabilities, opening the path for the growth of decentralized apps. 

With the upgrade, the blockchain network managed by Charles Hoskinson becomes a direct rival to Ethereum, Solana, Avalanche, and Polkadot.
<h2>Over The Previous Year, Cardano's On-Chain Metrics Have Improved</h2>
Cardano now settles more payment value per unit of market capitalization than its direct rivals, implying that the asset is cheap, according to the research. 

Over the previous 12 months, Cardano has settled moreover $1.6 trillion in total on-chain transaction value, which is around 40% less than Ethereum and 50% less than Bitcoin. 

Meanwhile, its market value is around 80% and 90% less than that of Ethereum and Bitcoin, respectively.

Furthermore, Grayscale believes that Cardano may be undervalued in comparison to Ethereum in terms of market value per active monthly user. 

Cardano presently has over 2.8 million monthly active users, whereas Ethereum has closer to 7 million. Cardano has a <a href="https://www.cryptoknowmics.com/news/crypto-market-movers-bitcoin-btc-attempts-recovery-above-42000-only-cardano-survives-amid-china-fud/">lower market</a> value per user as well. According to the report:
“Ethereum’s value per user is ~$55,000 while Cardano’s is ~$30,000. This may imply that Cardano is lower valued relative to its largest comparable crypto network, Ethereum, based on this particular metric.”

<h2>Cardano's Use And User Adoption Have Increased Significantly</h2>
Cardano's fee income has continued to skyrocket, increasing by a factor of 65 in the last year. 

The network now conducts more than 115,000 transactions per day, an increase of almost 13 times since the beginning of 2021. 

Although smart contracts have been available on the network's mainnet since September 12, consumers have yet to see fully functional decentralized apps.

Grayscale Report: Cardano May Be Undervalued Comparison to Ethereum

Based on its improving fundamentals, Grayscale believes Cardano may be undervalued in comparison to Bitcoin and Ethereum.

Kavya Barua is a voracious learner who is fascinated by crypto and Fintech advancements. Graduated from Janki Devi Memorial College's B.A (Hons) English program at the University of Delhi. She aspires to be a successful professional, having a keen interest in learning and achieving results.

Grayscale Report: Cardano May Be Undervalued Comparison to Ethereum

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