According to consulting giant The Motley Fool, 2 altcoin projects have the potential to overthrow Ethereum in the future. According to the firm, the technology and services offered by these altcoins are much more advanced. Therefore, they have the power to dwarf ETH in the future.
Ethereum Merge is coming
By almost every benchmark, Ethereum (ETH) is the world’s most important and largest altcoin asset. It ranks 2nd among all cryptos with a market capitalization of approximately $200 billion. The only crypto ahead of ETH is Bitcoin (BTC), the first cryptocurrency in history. If we look at the size and scope of the overall Ethereum ecosystem, we see that it is a truly impressive project. Many new popular technologies such as smart contracts and NFTs have emerged thanks to Ethereum.
In addition, the leading altcoin aims to perform the Merge upgrade on September 15. As Cryptokoin.com reported, Merge and the Ethereum network will switch to the Proof-of-Stake mechanism. Therefore, its scalability will increase immensely. Many analysts are betting that even though the Merge has not happened yet, the upgrade will secure Ethereum’s lead. So is this really a guarantee? According to Motley Fool, 2 cryptocurrencies have the potential to do this. These are: Solana and Avalanche.
“These 2 altcoins have the potential to take the throne of Ethereum”
Solana and Avalanche are extremely superior compared to Ethereum, which is considered by many to be relatively slow and expensive. Even after the Merge upgrade, ETH is likely to lag behind these altcoin projects. Solana and Avalanche provide much faster transactions and much lower costs than Ethereum. Ethereum still processes around 15 to 20 transactions per second. However, Avalanche processes 4,500 transactions per second and Solana 65,000 transactions per second.
These performance metrics are extremely impressive. That’s why some mainstream media outlets are already referring to Solana and Avalanche as “Ethereum killers”. Over time, developers and users will migrate to these blockchains that are easier and cheaper to use. We’re starting to see this now in areas like NFT and Metaverse. In these areas, higher speeds and lower costs attract users.
“This needs to happen for them to overthrow Ethereum”
In addition, Solana Avalanche ranks in the top six of all blockchains in total locked value (TVL). TVL is a popular way to measure how much faith investors have in a particular ecosystem. Despite all this, something else is needed for Solana and Avalanche to eclipse Ethereum. And that’s something else: network effects. In the tech industry, this is one of the most powerful concepts for understanding an industry’s competitive landscape.
In fact, the concept explains why some companies dominate an industry despite relatively minor technology differences from their competitors. In fact, understanding the network effect in the tech industry is simple: The value of any business grows as more people use it. So it all depends on whether the 2 altcoin projects can continue to grow their developer ecosystems and user base faster than Ethereum.
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