- Due to Ethereum’s high gas fees, many blockchain developers are looking for alternatives to build their projects on.
- The Solana, Cardano, and Polkadot cryptocurrencies have all increased this year due to increased adoption.
- These tokens have been dubbed the “Ethereum Killer” by the community, but proponents believe this is not a battle, but rather building Web 3.0 together.
Ethereum is the cryptocurrency to beat when it comes to smart contracts. And people like Solana, Cardano, Polkadot and others are hot on his heels.
Ethereum’s native token, Ether (ETH), is the second largest cryptocurrency in the world with a market value of $ 560 billion. It’s the most widely used platform for non-fungible tokens (NFTs), decentralized finance (DeFi), and other use cases. In October, when the total locked down value of DeFi hit $ 245.5 billion, Ethereum made up more than half at $ 150 billion, according to data from CryptoRank.
Who are the “Ethereum killers”?
In general, cryptocurrencies with a native third generation blockchain – Bitcoin is the first generation and Ethereum the second – have been suggested by the crypto community as an “Ethereum killer”. This means that currencies are decentralized and secure, enable smart contracts, offer a DApps platform, can scale well for fast transactions at low costs, and work with other blockchains.
Solana, Cardano and Polkadot are the first three names in the battle for supremacy. Each and every one of these would be considered a big part of the crypto market and are already in the top ten.
Ethereum, which is even bigger, is the only reason they are seen as challengers. However, according to Solana co-founder Raj Gokal, it’s not a fight at all, despite what others like Chris Burniske, a partner in venture capital company Placeholder, may believe.
Despite pretty words, L1 knives are all the rage. In #crypto, people generally want their biggest pockets to win. This … https://t.co/IN7GkkXrVX
– Chris Burniske (@cburniske) 1636495604000
@cburniske it’s not all pretty words man. It really doesn’t have to be a fight. more key pairs are better. User … https://t.co/FP4Qbsl2EH
– Raj Gokal (@rajgokal) 1636549163000
Growth of Ethereum and Ethereum killers in 2021
|Cryptocurrency||Market value as of December 1, 2021||Price from Dec. 1, 2021||Price from 01/01/2021||Increase in percent|
|Ethereum (ETH)||$ 560.16 billion||$ 4,734.09||$ 730.37||548%|
|Solana (SOL)||$ 67.34 billion||$ 222.20||$ 1.8421||11,962%|
|Cardano (ADA)||$ 53.09 billion||$ 1.59||$ 0.1753||807%|
|Polkadot (DOT)||$ 37.62 billion||$ 37.64||$ 8.3068||353%|
Source: Calculations using data from CoinMarketCap as of December 1, 2021 at 5:00 p.m. Indian Standard Time (IST)
Why do you need “Ethereum Killer”?
At the time of its public launch in 2015, Ethereum’s native tokens – Ether – were worth around $ 1. Its value rose to $ 10 in 2017, to $ 200 in 2019, and to $ 4,800 today. The Bull Run confirmed investors’ belief that helping a good project and rewarding miners who have invested in costly computer hardware is a formula that works. But users and developers have had some complaints. While ether tokens are divisible up to 18 decimal places, allowing for a trillion fractions, the practical benefit of precise microtransactions is lost due to “gas fees” – transaction fees that can in some cases be hundreds of dollars.
While Ethereum is now being upgraded to solve the speed of transactions, the energy-guzzling nature of mining, and other technical changes, the reduction in gas fees remains to be seen, despite the fact that over a million ethers have been burned since the London Hard Fork came into play.
Examples of developers and users who actually use the Ethereum blockchain to get things done are the stablecoin tether, the sandbox metaverse, and the aave deFi protocol. Other projects have opted for Solana, Cardano or Polkadot, even if they thought Ethereum was the right thing to bypass the high and volatile gas fees.
There are more projects on Ethereum than Solana, Cardano and Polkadot combined
|Blockchain||Number of projects|
Source: respective blockchain repositories as of November 17, 2021
Will Ethereum survive the disruption?
Analysts expect Ethereum to be successful, but its competitors will slowly degrade its market value. Solana, Cardano, and Polkadot are just three of the hundreds of crypto coins out there that promise to do exactly what Ethereum does, only better.
To be fair, these cryptocurrencies have the advantage of being able to learn from Ethereum’s mistakes.
“Ethereum cannot be killed, it is impossible,” said the Solana boss in November. According to the founder of the network Vitalik Buterin, the ongoing revision of the cryptocurrency should increase the transaction speed by 7,000 times to 100,000 transactions per second.
The overhaul will shift Ethereum to a less energy-intensive mining process and, according to network founder Vitalik Buterin, could increase the speed by 7,000 times to 100,000 transactions per second.
The upgrade is expected to be completed next year, and it remains to be seen whether it can hold its crown – or if it runs out of power and time.
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