Ethereum (ETH) remains the world’s second most valuable cryptocurrency by market cap, behind Bitcoin (BTC). Given Ethereum’s dominant position in many key areas of the Blockchain world, it may be difficult to imagine that any other cryptocurrency could surpass it. But over the last few years, a long list of competitors have tried to do exactly that. Many of these have been described as “Ethereum killers” due to their superior performance metrics and rapidly growing blockchain ecosystems. Two that stand out in particular right now are Cardano (ADA) and Solana (SOL), said Dominic Basulto, an analyst at US-based consultancy The Motley Fool. Let’s take a closer look at how these altcoin projects can surpass Ethereum in the long term, according to the analyst…
Cardano on the back of altcoin ADA may surpass ETH
With a market value of approximately $9 billion, Cardano is the seventh largest cryptocurrency in the world. This may sound impressive, but Ethereum’s market cap is almost $200 billion, so Cardano would need to grow 20 to 25 times in value to reach Ethereum’s current size. To eclipse Ethereum, Cardano would likely need to rise 50x in value. This is a big goal, so it’s important that Cardano’s founder, Charles Hoskinson, is also a co-founder of Ethereum. If anyone knows how to beat Ethereum, it’s Hoskinson.
Hoskinson has called out Ethereum’s structural flaws in the past and argued that Cardano has superior blockchain technology. He even suggested this summer that Cardano would surpass Ethereum and Bitcoin to become the top cryptocurrency in the world. Moreover, growth in emerging markets could drive Cardano higher. As Hoskinson noted in a recent interview, Cardano is looking for blockchain partners in Africa, South America, Asia and the Middle East. If Cardano becomes the most popular blockchain network in these regions, this could have a huge impact on its future valuation. Basulto uses the following expressions:
From my perspective, it all starts with decentralized finance (DeFi). However, in 2021, Cardano upgraded its blockchain to support the smart contracts required for DeFi and has continuously made new improvements and upgrades since then. This year, for example, saw the launch of the first stablecoin, Cardano, as well as a new burst of activity on decentralized exchanges. If Cardano’s DeFi ecosystem continues to grow rapidly, this could lead to rapid gains in valuation.
Expectations are also high for Solana
Solana, which is similar in size to Cardano, has a market value of $8 billion. Therefore, it will need the same kind of growth catalysts as Cardano in order to overtake Ethereum. In short, Solana needs a big, game-changing idea to get 50x in value. According to the analyst, that big idea could be mobile crypto. In the summer of 2022, Solana first unveiled its strategic vision for mobile crypto, including a new flagship Android-based mobile device optimized for crypto and a software development kit that will help developers around the world develop for mobile crypto.
It sounded like a lot of hype, but this spring Solana finally released its Saga crypto phone. The concept was simple but clever: Everything you do crypto-related on your phone should be simple and intuitive, and you should be able to take crypto with you wherever you go. The problem is that FTX’s collapse last year had disastrous consequences for Solana, who has extensive connections to former FTX CEO Sam Bankman-Fried. All the fear, uncertainty, and doubt (FUD) that has been swirling around Solana since the FTX collapse has taken its toll on the Solana ecosystem. For example, some high-profile NFT collectibles decided to overtake other blockchains this year, and overall activity in the Solana ecosystem is just starting to regain its previous footing. The good news, according to the analyst, is that Solana is up more than 100% this year, so the worst may be over.
What are the chances of these two cryptos surpassing ETH?
Many things need to go right for Cardano or Solana to overtake Ethereum. The fact that there are so many “Ethereum killers” and none of them have managed to displace Ethereum tells you a lot. As a result, it is very difficult to overtake a market leader with a first mover advantage, especially in the technology sector. The analyst said, “If I had to choose between Cardano and Solana, I would choose Solana. This isn’t just a crypto trying to surpass Ethereum, it actually proposes a new approach to mobile-based blockchain technology. “To me, this is an exciting concept and a big reason why I think Solana can achieve what many people think is impossible,” he says.
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