Solana Becoming Top Threat To Ethereum But ETH Is Still King
For a long time, Ethereum was considered the king of smart-contract-integrated platforms. But we know that nothing lasts forever, change is part of the market nature.
The financial world is always changing, in which the cryptocurrency market is in flux.
As Ethereum started to show major issues with the current system, many crypto enthusiasts have sought other alternatives. Solana and Cardano are top rivals that have sparked the interest of many investors.
Top Ethereum Killers: Solana Versus Cardano
The crypto market has over twelve thousand cryptocurrencies.
Despite the increased number of projects over time, Solana, Cardano, and Polkadot remain Ethereum’s top rivals and possess all the abilities to outperform the second-largest digital currency.
Four years since its launch, Cardano has stood the test of time. The currency is expected to become the best Ethereum alternative with enhanced scalability, flexibility, and security.
But the blockchain has recently shown certain signs of backwardness. Even though Cardano released smart contracts on the network, the blockchain shows fewer activities in comparison with Solana.
Solana has more advantages as the initial launch of smart contracts were made in 2019. The ecosystem is growing and getting more positive feedback from users.
When it comes to Decentralized Finance (DeFi), Solana is obviously in a favorable position. The blockchain has an extensive background in the DeFi sector, not to mention the advent of its decentralized finance marketplace.
Cardano, on the other hand, struggles to get developers on board with DApps and DEXes on the ecosystem. Additionally, Cardano’s smart contracts such as lend, borrow, yield farm, and more are still in their early development.
Up to now, Cardano is still the top threat to Ethereum but it’s likely a matter of time before Solana overtakes Cardano to become the second leading smart contracts platform.
Ethereum Is Still Unbeatable
Unlike Bitcoin, which is a transactional cryptocurrency, Ethereum’s objective is to create a self-governing infrastructure that is independent of authorities.
Ethereum is far from perfect since serious issues with its scalability, high gas fees, and speed have led consumers to seek a more suitable environment.
Ethereum, on the other hand, is undergoing a massive upgrade known as Ethereum 2.0. The Ethereum network will now run on a “proof of stake” architecture as a result of this upgrade.
To process new transactions, this architecture relies on stakeholders who possess the Ethereum virtual money.
Investors in cryptocurrencies believe the upgrade will allow the Ethereum network to scale, process more transactions at a faster rate, and enable apps with millions of users.
The Ethereum network has recently seen a spike in activity as a result of the NFTs (non-fungible tokens) craze and decentralized finance. The blockchain drives the majority of NFT and DeFi projects, which have grown quickly in recent years.
As the crypto market prepares to enter the next bull cycle, DeFi has the potential to become even more powerful. DeFi on Ethereum began two years ago with just MakerDAO dApp.
However, numerous new applications with comprehensive financial service functionalities are being developed at this time. More dApps will emerge to meet consumers’ needs. This will have a direct impact on the demand for ETH, resulting in a positive rise in the future.
DeFi is undoubtedly the sector where Ethereum is gaining popularity. However, Ethereum is still home to a multitude of other prospective projects. These projects range from Oracle to DAO to gaming.
The vast number of users is one of the reasons why developers use Ethereum.
Take for example, Metamask, the ETH wallet, which has generated over 1 million user engagements, which is a remarkable achievement for the blockchain.
The competition will never end as new and more smart contract solutions enter the market.
Nonetheless, Ethereum’s ecosystem has prospered in the last year, and it will not stop developing infrastructure to provide much more benefits to users.