Is there really a cryptocurrency capable of being an ‘Ethereum Killer’?
With issues such as high gas fees and a congested network that cannot scale, various alternative blockchains have emerged as competitors for Ethereum’s tremendous DeFi market share.
Here’s a look at which cryptocurrency networks could compete with Ethereum.
Cardano is a third-generation blockchain, attempting to solve the issues of previous blockchains through vigorously peer-reviewed updates and upgrades.
As for transaction speed, Ethereum currently processes around 20 TPS (transactions per second), while Cardano can reach 250 TPS. Eth2 will introduce sharding that should process 100,000 TPS, while Cardano’s Layer 2 ‘Hydra’ – a solution submitted in a research paper – could scale to 1,000,000 TPS, in theory.
In terms of DeFi, Cardano’s smart contracts are not yet available. The Alonzo hard fork brings this functionality on September 12. Whether Cardano’s well-researched architecture will work in practice has yet to be fully determined.
Given both Cardano and Ethereum are set to undergo some major changes in the next few months, it’s impossible to say which will come out on top. As the third-largest cryptocurrency by market cap, Cardano’s ADA is the closest to being able to overtake ETH in this sense, but future updates will be crucial here.
In the past month, interest in Solana has surged, alongside the price of SOL.
Like Cardano, Solana seeks to solve Ethereum’s high transaction costs and scaling issues. In its current form, the Solana network can process between 50,000-65,000 TPS.
This means that the network is able to keep the cost of transactions low. The average transaction fee for Solana is just $0.00025. The average Ethereum transaction fee is quite volatile, and much higher. According to BitInfoCharts, the average transaction fee was $48.178 on September 9.
What currently stands in Solana’s way of becoming the Ethereum killer is its lack of adoption. Ethereum is still the network of choice for many. However, with new NFT projects releasing, institutional investors coming on board, and a recent surge up the cryptocurrency rankings, it may stand a chance.
While Cardano and Solana seem to have taken centre stage in the last couple of months, Polkadot remains a top-10 cryptocurrency still referenced as a potential Ethereum killer.
Polkadot’s network is made up of parachains, all connected to the central relay chain. These parachains allow Polkadot to avoid issues of congestion, while allowing cross-chain communication, too.
Again, Ethereum 2.0’s sharding could solve some of the issues Polkadot seeks to address, and after both Cardano and Solana recently overtook DOT’s market cap, it may need to compete with these networks before any further movement.
Is There Really An Ethereum Killer?
The term ‘Ethereum Killer’ is more of a buzzword than an actual, coveted aim. The Ethereum ecosystem is by far the largest DeFi network around. Its demise would bring with it huge ramifications and consequences for the entire cryptocurrency industry, likely damaging the aforementioned coins.
Instead of coin maximalism, many opt to support a system that allows multiple networks to thrive. Speaking to DeveloperTech in February, Cardano’s Charles Hoskinson noted there is space for co-existence.
Dapp developers are businesses, they’re building a dApp because they want to accomplish something, they want to solve a particular problem. You should look at Ethereum and Cardano like you look at Rackspace and Amazon and Digital Ocean. It’s kind of silly if you say, well, you can only build on Amazon.