Cryptography analyst Lark Davis believes that compared to Cardano ( ADA ), Strive may offer greater upside potential; the reason he gives is that the network activity and long-term growth prospects of Cardano are concerning.
In a discussion with crypto investor Mitzio, Davis questioned whether ADA is still worth holding after years of development. He suggested that investors might consider Strive – a company specializing in Bitcoin vaults – rather than continuing to hold Cardano.
Why does Lark Davis have a more positive view of Strive rather than Cardano?
Davis questioned whether the network usage of Cardano is sufficient to support its valuation. He acknowledged that ADA has a loyal community and may perform well during upward trends in the crypto market, but he believes that a price rebound does not necessarily mean it will outperform other investment targets.
He compared the valuations of both, stating that the market value of Strive is approximately $2 billion to $2.5 billion, while the market value of Cardano is about $10 billion.
Davis also mentioned that the previous high stock price of Strive was around $260, and stated that if its stock price returns to that level, it could lead to a considerable upside potential. He also compared this potential with Strategy ( MSTR ), stating that the latter performed significantly better during the previous Bitcoin market cycle than Cardano.
However, there is no guarantee that Strive will be able to return to its previous high levels. Its stock is still subject to specific company risks, and its trend may not necessarily follow the price of Bitcoin directly.
Davis questions the long-term growth of Cardano
Davis indicates that after years of development, Cardano has not reached the level of network activity he originally anticipated. He recalled that he bought it when its price was still just a few cents in ADA; at that time, he found its future growth potential more attractive.
He believes that investors should assess whether Cardano has achieved the adoption rate and development progress they initially expected, rather than relying on its past performance or community support.
Mitzio Re-examine its Cardano Position
Mitzio indicates that although he has stopped adding new configurations to altcoins, he still holds some earlier altcoin investments, including Cardano. He explained that he has been holding these assets, waiting for a more suitable time to sell them.
Davis raises doubts about this approach and asks investors to consider: if there were a new sum of funds available today, would they still buy the same cryptocurrency?
“If I could buy this today, would I do it?” said Davis.
Mitzio agrees that investors should re-examine their current holdings and consider whether these holdings are still in line with their investment goals.
Strive can outperform Cardano?
Davis believes that for investors who wish to obtain exposure to Bitcoin through listed companies, both Strive and Strategy are viable options. However, these stocks face risks related to company decisions, financing, and market valuation; whereas the prospects of Cardano depend on its adoption rate as well as market demand for ADA.
The core argument of Davis is that investors should not continue to hold Cardano just because they purchased it years ago. On the contrary, before making an investment decision, they should re-evaluate its growth prospects and compare it with other opportunities.
The text also includes a disclaimer stating that all views and opinions expressed in it represent solely the author's perspective on the current market conditions, and investors should conduct their own research before making investment decisions; neither the author nor the publisher assumes any responsibility for the financial choices of readers.
