- Cardano, known as an Ethereum-killer, has marked the launch of its first-ever ERC-20 converter.
- Ethereum-killers Polkadot, Solana and Cardano have witnessed a spike in interest and on-chain activity in 2021.
- DeFi projects continue migrating from the Ethereum network to Solana or Avalanche for cheap and faster transactions.
- Analysts have predicted a drop in Ethereum price, noting red flags for altcoins in the current cycle.
As Ethereum heads towards ‘the merge’ or the transition from proof-of-work to proof-of-stake, experts believe Cardano, Solana and Polkadot could outperform ETH2.
Cardano, Solana and Polkadot could outperform ETH2
Experts believe that Ethereum’s transition to Proof-of-Stake (PoS) could allow the altcoin to onboard millions of new users. However, through 2021, layer-1 solutions have witnessed a spike in on-chain activity and transactions. Avalanche and Polygon have posted 435% and 125% growth in daily active addresses from September 2021 to the end of the year.
The spike in daily active addresses implies increasing investor interest in layer-1 scaling solutions. Experts have predicted that the merge would increase active users and the transaction volume on the Ethereum network.
The underlying improvements implemented by the merge are expected to lower the transaction cost on the network. However, it is unclear whether the migration from one consensus mechanism to another would help the Ethereum network compete with rising layer-1 scaling solutions.
Cardano, popular as an Ethereum-killer, recently launched its ERC-20 converter. The community will now have the ability to bring ERC-20 tokens from Ethereum to the Cardano network.
The Ethereum-killer blockchain has revamped its network to release contracts at a higher capacity.
@FeraSY1, a crypto analyst and educator, believes that the drop in Ethereum prices is a red flag. The analyst notes that the current cycle's drop-in altcoin prices is a red flag for cryptocurrencies.
Such disastrous performance for #Altcoins, even for the best ones like $ETH is a big red flag for me not to blindly hodl cuz u NEVER know when things flip upside down, and the moment bear market confirmation kicks in, it will be toooo late to take any protective action
— Crypto Feras (@FeraSY1) December 30, 2021
tbc
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Will Dogecoin (DOGE) price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. However, the recent recovery above the range low looks promising and hints at an explosive move for next week.
SEC Chair Gary Gensler’s latest call signals tough times ahead for crypto players
US Securities and Exchange Commission (SEC) chair, Gary Gensler, has hinted at tough times ahead for crypto players. In his testimony before the House Appropriations Subcommittee on Financial Service and General Government, Gensler advocated for additional infrastructure.
Crypto firms' de-banking escalates as banks reject applications due to liquidity and regulatory concerns
The crypto market has been facing hurdle after hurdle since Q2 2022 when Three Arrows Capital collapsed, which worsened in November 2022 following the bankruptcy of FTX. This led to a number of crypto companies falling.
Making a case for Binance Bicasso NFTs playing catalyst to BNB price recovery, $357 incoming?
BNB price is up three days in a row despite the legal tussle between the largest exchange by trading volume, its CEO Changpeng Zhao (CZ), and the Commodity Futures Trading Commission (CFTC).
Bitcoin: Breaking down key BTC levels to accumulate for Q2, 2023
Bitcoin price shows an interesting outlook as the first quarter of 2023 comes to an end. BTC has shown strength since day one of 2023 and has netted investors approximately 70% in returns.