Cardano (ADA) breakout signal flashes, but challenger Solana (SOL) is attracting market attention

In 2026, the new year begins with fresh hope for the cryptocurrency market. Cardano, backed by its technological upgrades and market expectations, is becoming a focal point for investors. As market attention centers on this, another competitor is quietly emerging, aiming to reshape the investment landscape.

This article will delve into Cardano (ADA) latest technical breakthrough signals and reveal why Solana (SOL), a strong challenger, is quietly attracting market attention and capital. All price data is updated as of January 12, 2026.

01 Cardano’s Breakthrough Signals: Technical and Fundamental Resonance

At the start of 2026, Cardano shows promising signs of recovery. According to Gate data, as of January 12, 2026, ADA’s price is $0.3921, with a 24-hour trading volume of $1.03M, and a market capitalization of $14.38B.

Behind this price performance are multiple positive signals resonating together. From a technical perspective, ADA’s key support levels are effectively confirmed, and recently, a “golden cross” was completed on the 2-hour chart—meaning the 50-day moving average crossed above the 200-day moving average.

Derivatives trading activity for Cardano is also exceptionally active, with ADA futures volume on Bitmex surging over 25,000% in 24 hours to reach $162M. Such volatility often indicates large-scale capital deployment.

Market analysts generally believe that as long as ADA can maintain stability above the key psychological level of $0.40, its breakout trend is likely to continue. More importantly, ADA has re-claimed the daily MA50 line for the first time since October last year, which many analysts see as an important structural turning point.

02 Fundamental Upgrades: Leios and ETF Expectations Driven by Dual Factors

Cardano’s technical upgrade progress is equally encouraging. The highly anticipated Leios upgrade is approximately 67% complete, which will significantly enhance the network’s scalability and transaction processing capacity.

In addition to technical upgrades, market expectations for Cardano obtaining US spot ETF approval are heating up. Although no official timeline has been announced, the market generally believes that as regulatory clarity improves in 2026, Cardano ETF could become the next approved product after Bitcoin and Ethereum.

Cardano founder Charles Hoskinson has explicitly stated that 2026 will be a critical year for Cardano to achieve substantial growth in decentralized finance (DeFi). This clear guidance from the project team injects more confidence into investors.

03 Solana: The Rise of a Strong Challenger

While Cardano is attempting to break through, market focus is increasingly shifting toward a formidable competitor—Solana. According to the latest Gate data, as of January 12, 2026, SOL’s price is $141.32, with a 24-hour trading volume of $86.56M, and a market cap of $79.78B.

In the past 24 hours, Solana’s price increased by 4.72%, and over the past 7 days, it rose by 4.42%, demonstrating strong upward momentum.

Despite some volatility in 2025, Solana has established a solid position among developers and users thanks to its high throughput, low transaction costs, and fast settlement times. Its ecosystem spans DeFi, NFTs, gaming, and social sectors, showing robust vitality.

Solana’s core advantage lies in its technological innovation. It employs a unique Proof of History (PoH) mechanism combined with Proof of Stake (PoS), achieving extremely high transaction processing speeds—up to 65,000 transactions per second theoretically, far surpassing most mainstream blockchain networks.

04 Performance Comparison: Solana’s Competitive Edge

When directly comparing Cardano and Solana, some key differences emerge. Cardano is known for its rigorous academic research and phased development roadmap, emphasizing security and sustainability.

In contrast, Solana focuses more on practical applications and high performance, which offers clear advantages in a market environment that values efficiency and user experience.

In terms of transaction processing capacity, Solana’s TPS (transactions per second) far exceeds that of Cardano. Cardano’s current theoretical TPS is around 250, while Solana’s actual TPS can reach several thousand. This difference is especially critical in high-traffic scenarios like DeFi and NFT markets.

Transaction costs are another important factor. Solana’s average transaction fee is usually below $0.01, whereas Cardano’s fees fluctuate between $0.1 and $0.5. For frequent traders and micro-transfers, this difference is significant.

Regarding developer ecosystems, Solana has attracted a large number of Web3 developers, with decentralized applications (dApps) rapidly increasing on its platform. While Cardano is steadily developing its ecosystem, it still lags in application diversity and user activity.

05 Market Trends: Capital Flows Are Quietly Shifting

It is noteworthy that despite the clear breakthrough signals for Cardano, market funds are quietly reallocating. According to market data, recent large capital flows have moved from established projects like Cardano toward high-performance blockchains such as Solana.

This capital movement reflects changing market preferences: investors increasingly prioritize practical applications, user experience, and network effects over just technological visions and long-term roadmaps. Thanks to its proven high performance and active ecosystem, Solana is emerging as the main beneficiary of this trend.

Derivatives market data also confirms this trend. Open interest in Solana futures continues to rise, indicating that institutional investors and large traders are increasing their exposure to SOL. Meanwhile, the total value locked (TVL) in the Solana DeFi ecosystem remains steadily growing.

It is also worth noting that after experiencing a series of challenges in 2025, Solana’s network stability and security have been significantly improved. The project team has carried out multiple network architecture optimizations, reducing downtime risks and enhancing overall reliability. These improvements further boost investor confidence in Solana.

06 Investment Perspective: How to Position on Gate

For investors seeking opportunities in the 2026 crypto market, both Cardano and Solana offer different value propositions. On the Gate platform, users can conveniently trade these assets and adjust their positions flexibly according to market changes.

For conservative investors, Cardano’s technical upgrade roadmap and potential ETF approval may offer long-term growth opportunities. Its relatively low price ($0.3921) also means higher potential returns, especially if it breaks through key resistance levels.

For those pursuing high growth and practical applications, Solana’s strong performance and ecosystem development may be more attractive. Its leading position in DeFi and NFT sectors, along with ongoing technological innovation, support its long-term value.

On Gate, investors can not only trade ADA and SOL spot but also participate in futures, margin trading, and other products, enabling flexible trading strategies. The platform’s high liquidity and security make it an ideal place to trade these popular assets.

Future Outlook

The cryptocurrency market is always changing; today’s leaders may become tomorrow’s followers. With its technological breakthroughs and fundamental upgrades, Cardano is opening new opportunities. However, Solana, as a strong challenger, is quietly attracting market attention and capital flows through its practical applications and network effects.

For investors, understanding the different value propositions of these two blockchains, aligning with their risk preferences and investment goals, and positioning on a secure and reliable platform like Gate may be key to seizing opportunities in the 2026 crypto market.

The competition between Cardano and Solana is far from over, and ultimately, this rivalry will drive the entire blockchain industry forward, creating more value for users.