Cardano vs Ethereum – Is ADA ready for a rotation rebound?

• Cardano’s developmental activity remains high, although the price action has not been reflected yet
• Could this disconnect set the stage for ADA to finally play a long game against ETH?

Approach, Cardano [ADA] He published a solid 7% Intraday profit on the graphs. In fact, it’s now one of the best among the best caps, even the edge Ethereum [ETH]that increased by “only” 5%. On the contrary, It seems that a larger picture is not so bull.

Since the end of April, the ADA/ETH graph has been at a stable descending enterprise, while the ratio back at the level of preferences at the time of the press. This relative weakness seemed to be in line with the return of Ethereum’s Standout Q2 +36%, while ADA closed a quarter of -13%.

Source: TradingView (there/ETH)

Such a divergence that not only emphasizes Ado’s insufficient performance, but also points to Ethereum’s power as the main driver of Ado’s wider structural weakness this year.

Why does it matter? ADA/ETH ratio is a critical measure of capital rotation to Cardano. Consider the November rally as an example. ADA gathered by 286% from low election day to December Maxim 1,32.

On the other hand, ETH published 68%in the same period, while the ADA/ETH ratio increased by 166%. This indicated a clear inflow of capital favor cardan over Ethereum.

Until this ratio shows signs of reversal or stabilization, Cardano is likely to remain on the siding in terms of relative position and market location.

Cardano is building quietly as Ethereum cools down

There is no doubt that for blockchains of Layers 1, short -term price pumps are not a real end game. Instead, it is building a durable infrastructure that solves real problems. This is what it eventually pulls in institutional capital.

Cardano seems to have leaned into this vision.

On the basis of GITHUB DATACardano is now on 4th place in developer activities, far before Ethereum in 13th place. This suggests that Cardano preferred to clarify the protocol of improvement, scalability and a tool on the chain.

Source: Santiment

It is true that Cardano did not bring an upgrading upgrade such as Ethereum’s Pectra, which managed 36% of the rally ETH in Q2. But its developers are steadily under the surface.

The silent momentum begins to show on-thee – Daily active addresses on Cardano have jumped by 24.6% over the last week, while Ethereum has seen a 14% drop to 453k.

Structurally, this shift could be significant.

While the Ethereum captured the reflector with its “hype” controlled Pectra, Cardano’s basic activity gained strength. If this trend persisted, this would strengthen the case for the average reversion in the ADA/ETH pair.