Ethereum’s dominance is at risk, as the crypto network is still a year away from receiving a major upgrade to its blockchain that would make it more competitive against newer protocols, according to JPMorgan.
Efficiency concerns, number of transactions per second, and high gas fees have been issues that have plagued Ethereum in recent months, in part due to the increasing transaction volume of NFTs and other digital goods that often use Ether as the currency of choice.
“However, the cryptocurrency markets continue to evolve and gain the popularity of the so-called Ethereum killer based on the improvements made against Ethereum,” JPMorgan explained in a note on Friday. The bank believes that new cryptocurrencies that improve Ethereum’s shortcomings could “reduce Ethereum’s dominance and market capitalization,” according to the note.
The market value of Ether is already beginning to deteriorate amid the cryptocurrency crash exacerbated by the Federal Reserve’s recent hawkish pivot. The value of the cryptocurrency is down nearly 35% from its recent high, wiping out nearly $200 billion from its market value.
That’s why these “four potential Ethereum killers” could put more sway in the ether’s dominance, according to JPMorgan.
1. “Solana is much faster.”
“Solana is one of the fastest growing cryptocurrencies. Its developers claim that it can process about 50,000 transactions per second, processing the current 15-45 TPS of Ethereum. SOL has more than 400 projects running on its ecosystem, including stablecoins like the dollar American It also operates wallets, decentralized exchanges, and other projects for DeFI.
2. “Cardano is more scalable.”
“Cardano was launched by one of the founders of Ethereum, Charles Hoskinson. It has taken an extensive research approach to development, with each phase being peer-reviewed and rigorously tested before implementation. Cardano is now also launching its own smart contract capabilities. This considers third-generation cryptocurrencies to be more scalable. of Ethereum,” JPMorgan said.
3. “Polkadot is more interoperable.”
“Polkadot aims to solve some of the scalability and cost issues in Ethereum. But Polkadot shines in its interoperability capabilities because it enables blockchain to communicate effectively. This approach also makes it easier for developers to switch to the Polkadot platform,” said JPMorgan.
4. University Theses
“Tezos is a user-centric open source project that allows users to focus on project management and the blockchain direction. In addition, Tezos offers prestigious security and modularity, and is seen as more scalable,” said JPMorgan.
But these four cryptocurrencies still have a long way to go before they can seriously challenge the dominance of ethereum. The combined market capitalization of all four Ethereum Killers is still less than a third of Ether’s market capitalization.