If you follow the cryptocurrency market, you should have noticed that in 2021, the boom of NFT happened, which led to the growing popularity of blockchains based on the technology of smart contracts. Yet, Ethereum is considered the biggest blockchain for creating DeFi projects. Can it change in the nearest future? Is there any probability that its main competitors, Solana and Cardano, will make Ethereum fall into decay? We’ve studied this question and decided to share our expectations with you in this short review. What are the prospects of Cardano, Solana, and Ethereum, and what their competition can lead to?
Ethereum (ETH) was released in late 2015. Since then, it has managed to become the second-biggest cryptocurrency with a market capitalization exceeding $160 billion, according to coinmarketcap.com. At that time, Ethereum introduced a completely original ecosystem of a decentralized platform. Ethereum also introduced the system Initial Coin Offering (ICO), which is now used by all crypto projects as the major source of funding.
In addition to this, Ethereum became the most popular blockchain among developers. Its capacity has been heavily utilized as the best ecosystem to build dApps and create non-fungible tokens (NFTs) worth sounds of dollars. This is how its native token ETH managed to become the second-biggest cryptocurrency after Bitcoin.
Although Ethereum remains a leading smart-contract blockchain, many of its features have been adapted and upgraded by new platforms. Cardano and Solana are the most obvious so-called Ethereum killers.
Can any project kill Ethereum?
There are some ambitious projects that have the prospects to fully outperform and substitute Ethereum. For example, you may consider such platforms as Tron (TRX) and Binance Smart Chain. Both projects apply the Solidity object-oriented programming language, which was developed by Ethereum founders and became quite common for other networks. Also, you might have heard about Polkadot (DOT) and Kusama, which were founded by a former member of the Ethereum team.
Despite such a diversity of projects, users and experts don’t consider they have the capabilities to become Ethereum killers. This title is usually awarded to Cardano (ADA). Its history dates back to 2017. Similar to many other networks, Cardano was started by a former member of the Ethereum team, Charles Hoskinson. As a result, Cardano managed to become the 8th biggest blockchain by market capitalization. Currently, this amount exceeds $12 billion.
Solana (SOL) comes in the 9th place by market capitalization with a market cap of $10 billion. Its history dates back to 2019. Although Solana is considered the most possible Ethereum killer after Cardano, it’s not as decentralized. Decentralization is sacrificed for the sake of a higher speed of transactions, which is around 50,000 transactions per second. Solana vs Cardano is also quite an interesting competition to discuss, so let’s take a look at the prospects of investing in those projects.
Cardano has become so popular because of its capabilities to solve real-world blockchain problems and because of its great scalability. The platform is growing together with the community, which makes ADA quite an alluring investment option in the long run.
Most analysts expect Cardano to start its bullish runs after the bear period on the market comes to an end. As a result of the bearish run, ADA is now valued at around $0.35. At the end of its bullish runs, which is expected projected for 2024, it’s expected to be priced at around $1.
Investing in Solana
If you believe in the growth of the NFT market, you should consider investing in Solana because this project is supposed to be the biggest player in this sector. Besides, it’s been in the top 10 most valuable cryptocurrencies for more than a year, which is a good indicator of its sustainability and growth prospects.
The SOL price heavily depends on general market tendencies. Over the course of the year, SOL lost more than 80% of its value. Such a devaluation is often considered nonobjective, so obviously, many investors expect the coin to start its bullish run.
The bottom line
Both Solana and Cardano have prospects to become real Ethereum killers. Solana, for example, is one of the most prominent networks in the NFT industry thanks to its unique proof-of-history consensus mechanisms. Cardano can outperform Ethereum in terms of its use for solving real-world problems and scalability. Therefore, investing in ADA and SOL isn’t quite a bad idea if you know how to invest in cryptocurrencies wisely.