Ethereum loses steam to Solana, Cardano, Polygon
The September low is now bought by investors. Ether and bitcoin both jumped more than 9% on Friday, the first day of October.
However, September’s roller coaster reflects a particularly difficult time for Ethereum and worries investors and developers alike.
High transaction fees and low network speed continue to be a problem. Despite the London upgrade from August, it had little impact on transaction fee volatility.
In the meantime, rival blockchains considered “ethereum killers” are exploiting ethereum’s weaknesses.
Nonetheless, Ethereum, which is the cornerstone of all kinds of crypto projects, including non-fungible tokens (NFTs), smart contracts, and decentralized finance (DeFi), faces major challenges in fending off the competition.
As a result, companies are turning to platforms such as Cardano, which is used to create dApps, and Solana, which has grown by almost 4,800% since September 2020. Due to its cheaper price and faster and faster to use than Ethereum, Solana is gaining traction in the NFT and DeFi ecosystems.
A Solana website says the company processes 50,000 transactions per second at a cost of $ 0.00025 per transaction. The transaction speed on Ethereum is limited to around 13 transactions per second, and the fees are significantly higher than on Solana.
There is a flow of institutional funds. Andreessen Horowitz and Polychain Capital led a token sale of $ 314 million for Solana.
As investors diversify away from Ethereum, alternative blockchains like Tezos, Solana and Cardano are rallying.
The blockchain is also not immune to bugs. Solana was hit by a denial of service attack last month, caused by bots flooding transactions.
There are several so-called ethereum killers, including Matic and Polygon, both complementary and innovative technologies, and Cardano, well known for its security.