Ethereum is a blockchain platform that offers its resources for new blockchain projects and applications. In this article we review Ethereum and its top competitors in 2022.
Overview of Ethereum technology
Bitcoin appeared in 2009 and settled in the market as the first blockchain-based currency. It took 4 years to present the extended blockchain concept. In 2013 Vitalik Buterin proposed adding more information to the blocks in a chain.
The world is fascinated with the idea of decentralized digital currency, but blockchains can do more. The blockchain can work for:
- Real estate deals
- And many others.
Buterin and Co offered to set up the smart contracts on a blockchain. A smart contract is a script that completes a deal under predefined terms. For example, you took a loan in USDT and guaranteed it with some Bitcoins. As soon as USDT lands at your amount and your loan expires, a smart contract releases your Bitcoins and closes a deal.
Ethereum offers ERC-20, a universal open-source smart contract that can be easily modified, and a Platform as a Service. Using EVM – Ethereum Virtual Machine – any user can run their crypto project. So, Ethereum is a native cryptocurrency for this platform (ETH).
Since Ethereum was successfully launched in 2015, thousands of applications and ICO projects started on the Ethereum platform.
Ethereum (ETH) today’s
In 2015 the price of ETH started at $2.39 and went up and down for two years. In 2017 ETH skyrocketed with the market and traded in the range of $275-350, with a maximum of $1400 at the beginning of 2018.
However, the first crypto winter destroyed the growth, and ETH fell to $140, ten times. Almost two years is required to renew growth and reach the record price level of $4300 in May 2021. Then it fell again to $984 but the growth quickly renewed.
In 2022 the investors wait for the final stage of migration from protocol Proof-of-work to Proof-of-stake. PoS protocol for transactions works faster and requires less energy than PoW. If the migration is completed successfully, many new and returning investors will buy ETH. So, Ethereum is in an upward trend now.
Top ETH competitors in 2022
Ethereum is not a single solution, just a first of the type. Some competitors are prominent and successful so they are called Ethereum killers. Now it does not look like another cryptocurrency can overcome Ethereum, but it is good to know their names.
Solana is the direct competitor for Ethereum. It is a platform for blockchain applications, it uses a Proof-of-Stake protocol and for now, it is the fastest blockchain in the world. By the price growth, Solana is in the list of the top ten fastest recovering cryptocurrencies in 2022. Now it trades in the range of $34-36, with an all-time high of $259.99.
Can Solana beat Ethereum and push it down from second place? Possibly, the transition to PoS protocol will not meet estimations. Now it is too early to wait for it.
The owner of Polkadot, Gavin Woods, was a partner for Vitalik Buterin at the start of Ethereum. Polkadot is a blockchain platform that uses the PoS protocol from the beginning; it is also a cryptocurrency (DOT) for this platform.
Many market analytics believe Polkadot is a good asset for long-term investment. It has a reputation on the market and a wide supporting community. However, it is far from competing with Ethereum for second place in the cryptocurrency rank.
Polygon is an Ethereum-compatible blockchain network that provides the same service as Ethereum but with lower transaction fees and faster speed. The platform positions itself as “developed for developers by developers”. It means that the main purpose of Polygon is to provide a platform for blockchain applications. Polygon also has a native token MATIC.
This platform is in great demand, but it will not kill Ethereum because both platforms work together better.
Gavin Woods is not the only Ethereum co-founder who launched his own platform. In 2015 Charles Hoskinson left the project Ethereum because of the controversies with Vitalik Buterin on the organization type.
Hoskinson launched his blockchain platform, Cardano, in 2017 promising it will be more flexible than Bitcoin and more scalable and safer than Ethereum. The promise is successfully realized and works for now. Internal token for Cardano is ADA. However, Cardano is not a trendsetter in the crypto market, so it probably has no chance to push Ethereum out of the market.
This blockchain on smart contracts is a real competitor for Ethereum. Tezos also offers a platform for crypto projects and applications. Tezos is known for its unique scheme of meta-consensus: the users can vote for node upgrades and adaptations. This cryptocurrency could overcome Ethereum, but it lost a moment in the beginning. The current price gap between Tezos and Ethereum reveals the market capitalization of Ethereum is many times more, so it is not so vulnerable.
Ethereum is not only a popular cryptocurrency but also an important player in the crypto market. This platform showed the crypto world that blockchain is more than a digital currency. Besides, Ethereum introduced the unified smart contract format – ERC-20.
Ethereum hosts many projects and applications and stays in second place in cryptocurrency rates. There is a minor chance that other cryptocurrencies can overcome Ethereum, but in 2022 it is not seen in a foreseen future.
Which coin can beat Ethereum?
Ethereum has been beaten several years ago: after the DDOS attack ETH lost its position in the rate and Riddle landed in second place. So, there is nothing unexpected in the situation of Ethereum competitors’ success and the changes in the list of top-rated currencies.
Among the closest Ethereum competitors the experts name Cardano, Tezos, and Polkadot. Polygon is also on the list, as well as Solano. Each of these currencies can beat Ethereum in a favorable environment, but now the situation is far from this.
Is ETH a good investment?
Yes, in 2022 ETH is a good investment. After falling with the crypto market, ETH recovered its position. Moreover, it grows faster than Bitcoin. It means the investors have positive forecasts for Ethereum growth after the transition to a new protocol, to Proof-of-Stake from Proof-of-Work.
After falling to $948 in late 2021, Ethereum recovered to $1600 and the positive trend continues. So, Ethereum is a good investment in 2022.
Is Solana Better than Ethereum?
Solana is a worthy competitor to Ethereum. Once, it was called an Ethereum killer. It is hard to deny that it grows fast it successfully survived a crypto winter in early 2022. Transaction fees in the Solana system are lesser than in Ethereum or Cardano, and the transaction speed is very fast.
However, Ethereum has the first mover advantage: it has the largest smart contract network. With the shift to the PoS protocol, Ethereum will improve the transaction speed and fee. So, Cordana is a decent competitor to Ethereum, but it is not better. In the best case, both cryptocurrencies are equal. In terms of investments, Ethereum seems even more attractive.
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