"As the first blockchain with smart contracts, Ethereum has established a relatively complete ecosystem and accumulated enough users by virtue of its first-mover advantage, but it has been criticized in terms of Gas fees, processing speed and scalability. Subsequent competitors are eyeing up, what advantages do they have? Is it possible to replace Ethereum in the near future?"
On February 20, according to data from the blockchain analysis company Santiment, the number of active developers on the Solana chain has surpassed that of Ethereum, becoming the blockchain with the largest number of active developers. This has to make the market pay attention to the "Ethereum competitors" again. Public chains including Solana are making up for the existing shortcomings of Ethereum and accelerating the encroachment of the Ethereum market. What are the advantages of these rising stars, and will they replace Ethereum in the future?
01. Competitors rise rapidly, and Ethereum accelerates 2.0 upgrade
New cryptocurrency investors may have noticed that the sharp drop in prices and bearish sentiment is being felt across the cryptocurrency market, with bitcoin already at six-month lows and altcoins not far behind.
However, insiders in the cryptocurrency industry are still optimistic about the cryptocurrency market, at least in the long run, the current market situation is just a race to see which blockchain projects can survive and be able to survive in the decentralized world. Become a leader in the future.
In the current fierce market competition, the most intense competition should be between Ethereum and Ethereum improvement projects.
ETH has a market capitalization of around $325.6 billion at the time of writing, slightly smaller than Bitcoin. The Ethereum network is scheduled to be upgraded in 2022, and the new version, Ethereum 2.0, is said to offer faster processing times, lower fees and greater scalability.
Before the emergence of Ethereum 2.0, the "Ethereum competitors" are gaining momentum and occupying an increasing share of the NFT (non-fungible token) market, although 80% of NFT transactions are in Ethereum Carried on. But what is clear is that these new blockchains seem to enable on-chain NFT transactions through faster, greener technology and lower gas fees, which has caused some people to wonder how long Ethereum can maintain its leading edge. advantage?
"2022 will be a battle for Web 3 and the internet revolution," said Ian Balina, founder of crypto analytics firm Token Metrics. "It's going to be an intense race."
02. Ready to wait, what are the advantages of each of the four major competitors?
Balina, founder of encryption analysis company Token Metrics, told the media, "Ethereum is clearly the leader of the Web3 and Internet revolution, but due to Ethereum's high fees and low transaction speed, other blockchains are attracting more interest at a faster rate." new user."
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Solana
At the time of writing, Solana’s original token, SOL, has a market capitalization of $30.1 billion. Solana uses a "proof-of-history" mechanism to verify transactions, which is different from Ethereum's "proof-of-work" consensus model. Large institutions such as JPMorgan and Bank of America have expressed confidence in Solana, even saying that Solana could become the "signature VISA of the digital asset ecosystem."
Solana is also backed by top venture capital firm Andreessen Horowitz, and having institutional backing is not a good thing in a Web 3 world. Excessive institutional interest may raise the eyebrows of decentralization hardliners. At the same time, Ethereum already has a sticky user base, and many of them will not choose to give up out of habit.
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Cardano
Cardano is the most likely contender to replace Ethereum in terms of environmental sustainability. At the time of writing, ADA has a market capitalization of approximately $32.3 billion. Crypto insiders are paying close attention to Cadano, which has been underperforming due to the recent launch of Cardano’s first decentralized finance (defi) exchange, SundaeSwap.
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Tezos
Tezos, another smart-contract-enabled blockchain that quickly debuted, is used to issue new digital assets and decentralized applications (dApps). XTZ is the original token of Tezos. At the time of writing, the yuan has a market capitalization of $2.9 billion.
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Polkadot
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