The cryptocurrency market is in freefall, but will a wave of “Ethereum Killers” dull ETH’s shine?

The cryptocurrency market is in freefall, but will a wave of "Ethereum Killers" dull ETH's shine?
Investors and developers are picking alternatives to Ethereum for diversification/courtesy of pexels...

Across the board, cryptocurrency prices are falling. Agents who place investor gurus on financial news shows and wise guys with blue checkmarks in their Twitter bios are patting themselves on the back and saying, “I told you so.” These drama queens should not be listened to by serious investors. We all know that cryptocurrency is a roller coaster ride. Remember that patience is a virtue. The line is called “Hodl.”

 

The blockchain players, which are expected to eat into Ethereum’s market share and grow into hundred-dollar or even thousand-dollar coins by 2022, will be one of the biggest stories in crypto investing.

 

As a way to diversify their cryptocurrency portfolio, every investor is chasing that theme.

 

The main “Ethereum Killers” have already been identified.

 

Solana (SOL), Avalanche (AVAX), Polkadot (DOT), and Cardano are the most popular stocks (ADA). 

 

There’s Hedera, a decentralized blockchain aimed at businesses with a $4 billion market cap. It is owned by major corporations such as Tata and Wipro in India, as well as Google and IBM in the United States. So, if you don’t like corporations, Hedera might not be the place for you. However, if you believe that corporations will invest in blockchains, which you should, this could be a viable alternative to Ethereum as an investment.

 

Hedera isn’t going to break the bank for anyone. A single Hedera (HBAR) costs only $0.23. As of this weekend, it’s up 133 percent in the last year.

 

Smartlink, a Vancouver-based company, is developing a suite of decentralized finance (defi) apps on Tezos, a proof-of-stake blockchain with a current market cap of $2.6 billion, according to Ben Constanty, CEO. Constanty raises the issue of the “overheating blockchain,” as I like to call it. Elon Musk brought this up after going all-in on Bitcoin last year, allowing people to buy Tesla cars in BTC and allowing BTC to be purchased from Tesla’s Treasury. But, because mining BTC consumes too much energy, and Musk is a climate activist, he abandoned the idea of hoarding Bitcoin.

 

Constanty believes that more energy efficient blockchains that do not cause a fire will attract investor interest. (Think ESG personalities.)

 

“There’s a debate about blockchain carbon signatures, and Tezos, among other alt blockchains, outperforms Ethereum in terms of energy consumption,” says Constanty. “In addition, Tezos is now used by a growing number of artists, entertainers, and game development companies such as Ubisoft for their NFTs.”

 

Tezos and Ubisoft announced their partnership on December 7. Tezos will also be used to build The Gap’s non-fungible tokens (NFT) a month later.

 

Tezos (XTZ) is currently trading at around $3, down slightly over 4% over the last year.

 

The NEAR blockchain is another “climate conscious” alt, if such a term even exists. It connects to Ethereum via a bridge. Vlad Ponomarev, CEO of Broxus, one of the companies behind Everscale, a decentralized ecosystem based on the Ever OS platform, says Everscale is a lesser-known name. The platform is said to be capable of processing millions of transactions per second, and around 1,000 developers are currently working on it.

 

In an emailed response to questions about Ethereum alternatives, Ponomarev says, “As developers, we decided to focus on the Everscale network for several reasons, one of which is because it has a solid and passionate developer community.” “The network’s governance is distributed among professional, institutional investors, and there is no ICO, so there is no investor pressure,” he says, despite the fact that Everscale is tradable. Their ticker is extremely expensive.

 

Developers may be pleased, but investors have lost money on EVER over the past 12 months and since its October 2020 launch.

 

“They’re not trying to create a buzz,” Ponomarev says. “In the long run, it’s better for the network.”

 

Can Ethereum Be Dethroned?

 

The lesser-known blockchains are all competing with the more well-known alternatives, which are largely competing with Vitalik Buterin’s Ethereum, the granddaddy of them all.

 

All anyone can really say is good luck with it. This is a different world. We don’t know if Ethereum will buy Tezos or any of the other smaller companies that excel at speed and scalability in the future. Polygon (MATIC) purchased the Hermez Network (HEZ) in an estimated $250 million deal in August. It was the first transaction between two blockchains of its kind.

 

Many newer projects are launching as an initial decentralized exchange offering (IDO), and they often need a launchpad to help them raise funds and awareness. In an emailed correspondence, Rutherford Atayobo, co-founder of the play-to-earn blockchain game Sin City Metaverse, notes that Ethereum fees make this almost unviable for smaller players, so developers have turned to alternatives, including one not mentioned here yet — Binance Smart Chain — to launch their projects.

 

Nonetheless, developers and investors will focus their efforts on the real, big alternatives. This is where the money will be flowing.

 

Cardano has been chosen by Nigel Green, CEO of the deVere Group.

 

“Cardano is likely to be a competitor to Ethereum because its blockchain can be used to build smart contracts, protocols, and decentralized applications in addition to serving as a currency,” he says. “It’s claimed to be much more scalable than Ethereum.” Cardano will also pose a threat to the all-powerful Bitcoin, he believes.

 

“Those who invest in digital assets know that diversification is one of the keys to successful investing,” Green says. “Investors will want to diversify their cryptocurrency portfolios, which will eat into Bitcoin’s market share.”

What about Ethereum’s market share if it eats into Bitcoin’s?

 

“Many developers have chosen to work on Cardano rather than Ethereum,” says Ken Olling, co-founder and CEO of MELD, an Oslo-based defi protocol based on Cardano.

 

“Cardano’s design is based on highly peer-reviewed research papers from research labs. They walk a little slower this way, but the end result is amazing. Cardano has a high transaction speed and low transaction fees, according to Olling.

 

The Ethereum network remains the largest. Buterin’s blockchain is meeting all of its goals, and its dominance in the DeFi and NFTs sectors, as well as the use of smart contracts, continues.

 

According to Konstantin Boyko-Romanovsky, CEO of Allnodes Inc., a cryptocurrency hosting and staking platform, “the future of the blockchain industry is not about one blockchain outperforming all others.” “It’s about many blockchains cooperating to provide cutting-edge technological solutions of various scales and scopes.” The network continues to grow and improve as Ethereum approaches the merge, which will bring it to a scalable, greener proof-of-stake model. This should help Ethereum maintain its position as a leader in the blockchain space.”

 

Ethereum is respected even by Cardano users. Despite the fierce competition, Kenneth, Senior contributor at Forbes, asked Olling where he thought Ethereum’s price would go this year.

 

“Moon,” he says, in true crypto-believer fashion.

 

Haters, please accept my apologies. Bitcoin is also up today.

 

Have a tip we should know? tips@rhd.news

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