Ethereum (ETH 3.37%) is the second largest cryptocurrency in the world by market value and is set to change the way business is done. Indeed, blockchain-powered decentralized applications (dApps) help users do everything from managing their finances to collecting art. This popular cryptocurrency has grown by more than 500% in the last three years.
I am optimistic about the future of Ethereum. But two cryptocurrencies can really overtake this crypto giant. I’m talking about smaller and younger players, Cardano (ADA 6.23%) and Avalanche (AVAX 0.00%). That’s why…
The main problems of Ethereum are transaction speed and high cost. It is in the process of being updated to address these issues. Also read: Is this bottom-listed cryptocurrency more profitable than Solana (SOL) and Ethereum Classic (ETC)? But Cardano is already faster and will soon get even faster.
But first, a little background on this cryptocurrency. One of the co-founders of Ethereum, Charles Hoskinson, is also the founder of Cardano. This means that there is a lot of experience and knowledge behind this new player. Cardano has its own token called “ada” and is a blockchain.
Last fall, this cryptocurrency reached a milestone with the launch of smart contract functionality. This means that dApps can be built on the blockchain. And this is a good sign: more and more money is being invested in these projects on Cardano. According to Defi Llama, the total value locked has risen 14% since the beginning of the month to approximately $136.93 million.
Now back to speed. Cardano software engineers are working on a Hydra head scaling solution. Each head is an autonomous network that allows transactions to take place. The idea is to increase the number of transactions on Cardano by making a large number of them on these heads. According to preliminary estimates, each head processes 1000 transactions per second. It is possible that Hydra could start rolling out as early as this year.
Like Cardano, Avalanche has its own Avax token and is a blockchain. The Avalanche is also a winner when it comes to speed. See also: Here’s why prices for Solana, Cardano and Avalanche rose today. Transactions on Avalanche are completed in less than two seconds. By comparison, on Ethereum it can take up to six minutes.
While Ethereum processes about 14 transactions per second, Avalanche can process an unlimited number of transactions. This is possible thanks to Avalanche subnets or independent networks. Developers can create them for specific projects.
The rest of the Avalanche structure also contributes to speed and efficiency. Avalanche actually consists of three blockchains with different functions such as asset creation, validator coordination, and smart contract management. The main network coordinates three blockchains and subnets.
Further, it is important to note that this blockchain is compatible with its major competitor Ethereum, making Avalanche easier to build and operate for those using Ethereum. Developers can run Ethereum decentralized applications directly on Avalanche. They can easily transfer assets using the Avalanche Bridge.
There are currently over 200 projects on Avalanche. They range from decentralized finance to games and art.
According to a report by Electric Capital, Avalanche is growing faster than Ethereum at the same stage in its history when it comes to developers using the network. The growth in the number of developers using the web is a sign of strength.
Cardano, Avalanche and Ethereum
Cardano and Avalanche are winners in terms of speed and user count. In terms of stock dynamics, these players and Ethereum have been hurt lately. It might interest you: 2 cryptocurrencies to keep an eye on “Buy the dip” and make long-term profits. Since the beginning of the year, Cardano and Avalanche have lost 62% and 75%, respectively. Ethereum fell by 58%.
All three have what it takes to bounce back and take a prominent place in the cryptocurrency market. With the strengths I mentioned above, Cardano and Avalanche can outperform their big competitor in the recovery of the crypto market and beyond.
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Passionate about cryptocurrencies and DeFI, Thomas brings international news on the subject!