With a market value of $560 billion, Ethereum’s native token, Ether (ETH), is the world’s second biggest cryptocurrency.
It’s the most popular platform for non-fungible tokens (NFTs), decentralized finance (DeFi), and other applications. According to data compiled by CryptoRank, Ethereum accounted for more than half of the entire locked value in DeFi in October. When the total locked value reached $245.5 billion.
The crypto industry labeled cryptocurrencies with native third-generation blockchains as Ethereum Killers. Bitcoin is the first, and Ethereum is the second. That implies decentralized currencies that are safe. This allows smart contracts, providing a DApps platform, scaling effectively for rapid, low-cost transactions, and integrating with other blockchains.
Solana, Cardano, and Polkadot
The top three names in the fight for domination are Solana, Cardano, and Polkadot. Any of them would account for a significant portion of the crypto market and are currently among the top 10.
The only reason they are competitors is that Ethereum is significantly larger. Despite what some, such as Chris Burniske, partner at venture financing company Placeholder may believe, Solana co-founder Raj Gokal believes it isn’t a competition at all.
Ethereum’s native coins, Ether, were worth around $1 at the time of its public introduction in 2015. By 2017, their worth had risen to $10, $200 by 2019, and $4800 by now. The bull market validated investors’ assumption that funding a successful enterprise and rewarding miners who invested in expensive computer hardware is a solid strategy.
However, there were a few issues for both users and engineers. While Ether tokens are divisible to 18 decimal places, allowing for a quintillion fractional units, the benefit of exact micro-transactions loses in practice due to ‘gas costs.’ Which can amount to hundreds of dollars in some situations.
While Ethereum currently improves to address transaction speed, mining’s energy-intensive nature, and other technical advancements, and the drop in gas costs needs to be visible. Despite the fact that over a million of Ether consumption since the London Hard Fork.
The stablecoin Tether, the Sandbox metaverse, and the Aave DeFi protocol are all examples of developers and consumers. They use the Ethereum blockchain to do things. Other projects have chosen Solana, Cardano, or Polkadot over Ethereum. This is in order to avoid the expensive and variable gas fees associated with Ethereum.
These three cryptos will achieve the same fate as Ethereum
Analysts predict that Ethereum will be successful, but that its competitors will steadily erode the market value. Solana, Cardano, and Polkadot are just three of the hundreds of cryptocurrencies that claim to offer the same thing as Ethereum, but better.
To be fair, these cryptocurrencies benefit from Ethereum’s faults.
The Solana chief said in November that it is impossible for Ethereum to break or terminate. In addition, the network’s founder Vitalik Buterin confirmed that the cryptocurrency’s continuous upgrade promises to boost the rapidity of deals by over 7,000-fold hitting 100,000 deals per second.
The upgrade will set off Ethereum to a lower energy-blistering mining advancement and, according to network founder Vitalik Buterin, could boost speed by over7, 000 to 10, 000 deals per second. The renovation will be finished next year. Finally, it remains to be seen if it can retain its title. Whether it will run out of steam and time.