Crypto asset manager Grayscale has released a report in which he talks about Ethereum (ETH) and other altcoin projects. Grayscale likened ETH’s smart contract feature to New York’s “best and worst areas.” Here are the details…
Grayscale published altcoin report
The report is based on the oldest smart contract network Ethereum Solana (SOL), Avalanche (AVAX), Polkadot (DOT), Cardano (ADA) and It compares it to newer competing blockchains like Stellar (XLM). It comes after the firm has launched a crypto fund dedicated to smart contract platforms, excluding Ethereum, as we reported on cryptokoin.com. In a section titled “Digital cities,” Grayscale analyzed Ethereum, Avalanche, and Solana. The firm compared Ethereum to New York and noted that both share similarities with issues stemming from their height. The following statements were included in the report:
Ethereum is like New York City: large, expensive, and cramped in certain areas. However, it also has the richest app ecosystem, with over 500 apps worth over $100 billion, 10 times larger than any other competing network. An L2 solution like Polygon can be compared to a skyscraper in NYC: scaling is achieved by building upward.
The report drew attention to congestion in the ETH network
The firm has noted high gas fees in the past caused by excessive demand for DeFi services and NFTs, and the network on Ethereum Due to congestion, he described users switching to rival Blockchains as “NY citizens relocating to cheaper cities.” “Smart contract platforms such as Stellar, Algorand, Solana, and Avalanche have experienced strong growth in daily on-chain transaction numbers as Ethereum fees started to see $10 per transaction,” the report said.
Grayscale described Solana as Los Angeles, stating that it’s “a structurally different network that’s faster and focused on different use cases.” Avalanche has been compared to Chicago because its economy is similar to NYC but has a smaller network, saying “transactions are cheaper and less congested and development is more centralized.” Regardless of the benchmarks, Grayscale highlighted the rise of smart contract platforms use cases, and the firm specifically pointed to the DeFi and Metaverse sector.
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