Solana, Cardano, Polkadot and others — here’s a quick look at why these crypto tokens are being touted as ‘Ethereum Killers’
- Ethereum’s high gas fees have many blockchain developers looking at alternatives to build their projects.
- Cryptocurrencies Solana, Cardano and Polkadot have all surged this year on the back of increasing adoption.
- These tokens have been dubbed ‘Ethereum Killers’ by the community but proponents believe that it’s not a fight at all but about collectively building Web 3.0.
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), decentralised finance (DeFi) and other use cases. In October, when the total locked value in DeFi hit $245.5 billion, Ethereum accounted for more than half at $150 billion, according to data collated by CryptoRank.
Who are the ‘Ethereum Killers’?
In general, cryptocurrencies that have a native third-generation blockchain — Bitcoin being the first-generation and Ethereum being the second — have been proposed as ‘Ethereum Killers’ by the crypto community. That means currencies that are decentralised, secure, enable smart contracts, offer a DApps platform, scale well for fast transactions at low cost, and can work with other blockchains.
Solana, Cardano and Polkadot are the top three names in the battle for supremacy. Any single one of these would count as a large slice of the crypto market, and are already in the top ten.
Despite pretty words, L1 knives are fully out. In #crypto, generally, people want their biggest bags to win. This… https://t.co/IN7GkkXrVX— Chris Burniske (@cburniske) 1636495604000
@cburniske it’s not just pretty words, man. it really doesn’t have to be a fight. more key pairs are better. users… https://t.co/FP4Qbsl2EH— Raj Gokal (@rajgokal) 1636549163000
Growth of Ethereum and Ethereum killers in 2021
|Cryptocurrency||Market value as of 1 Dec 2021||Price as of 1 Dec 2021||Price as of 1 Jan 2021||Increase in percentage|
|Ethereum (ETH)||$560.16 billion||$4734.09||$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%|
Why is there a need for ‘Ethereum Killers’?
At the time of public launch in 2015, Ethereum’s native tokens — Ether — were worth about $1. Their value rose to $10 by 2017, $200 in 2019 and $4800 today. The bull run affirmed beliefs of investors that backing a good project and rewarding miners who invested in costly computing hardware is a formula that works.
But, users and developers had a few complaints. While Ether tokens are divisible upto 18 decimal places allowing for a quintillion fractional units, the advantage of precise micro-transactions is lost in practice due to ‘gas fees’ — transaction fees that can translate to hundreds of dollars in some cases.
Examples of developers and users who actually use the Ethereum blockchain to get things done, include the stablecoin Tether, the Sandbox metaverse and the Aave DeFi protocol. Other projects have opted for Solana, Cardano or Polkadot even if they believed Ethereum would be the right one, in order to circumvent its high and volatile gas fees.
There are more projects on Ethereum than Solana, Cardano and Polkadot combined
|Blockchain||Number of projects|
Will Ethereum be able to survive the disruption?
Analysts peg that Ethereum will be successful, but its competitors will slowly chip away at its market value. Solana, Cardano, and Polkadot are only three of the hundreds of crypto coins out there that promise to do just 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’s impossible,” the Solana chief said in November. The cryptocurrency’s ongoing makeover is promised to boost the speed of transactions by over 7,000-fold hitting 100,000 transactions per second, according to the network’s founder Vitalik Buterin.
The makeover will move ethereum to a less energy-intensive mining process and, according to network founder Vitalik Buterin, could boost speed by over 7,000-fold to 100,000 transactions per second.
The upgrade will likely be completed next year and it remains to be seen whether it will be able to hold onto its crown — or if it will run out of steam and time.
Ethereum, Solana, Polkadot hit fresh all-time-highs in November 2021
First step towards Ethereum 2.0 – the London upgrade, and what to expect next
Top 10 cryptocurrencies in the world — Bitcoin and other altcoins
- Elon Musk said Twitter will start showing users how many people have seen their tweets, and got Jack Dorsey's approval
- Elon Musk reportedly told workers at his brain-chip startup to imagine they had bombs strapped to their heads to make them work faster
- A janitor laid off at Twitter's headquarters said one of Elon Musk's team members told him he'd be replaced by robots
- Cyclone Mandous weakens into deep depression after crossing coast in TN
- India abstains on UNSC resolution exempting aid from sanctions, says terror groups in neighbourhood take advantage of carve-outs
- BSF, Pak Rangers exchange fire along international border in Rajasthan
- Indians report unexpected rise in heart attacks, says survey
- WHO concerned over increasing antibiotic resistance in human infections