Bitcoin

2021/10

Ethereum losing Steam To Solana, Cardano, Polygon

Troublesome time for Ethereum and is causing concern for investors and developers.

High transaction fees and slow network speed continue to be a problem. Despite the London upgrade from August, it has had little impact on volatility of transaction fees.

In the meantime, rival blockchains deemed “ethereum killers” are exploiting ethereum’s weaknesses.

Nonetheless, Ethereum, which is the building block for all sorts of crypto projects, including non-fungible tokens (NFTs), smart contracts, and decentralized finance (DeFi), faces some major challenges to fend off the competition.

As a result, companies are looking into platforms like Cardano, which is used to build dApps, and Solana, which has seen a nearly 4,800% growth since September 2020. Due to its cheaper and faster price and faster usage than ethereum, Solana is gaining traction in the NFT and DeFi eco-systems.

A Solana website states the company processes 50,000 transactions per second at a cost of $ 0.00025 per transaction. The transaction speed on Ethereum is limited to about 13 transactions per second, and the fees are substantially higher than on Solana.

There is a flow of institutional funds. Andreessen Horowitz and Polychain Capital led a $ 314 million token sale for Solana.

As investors diversify away from ethereum, alternative blockchains like Tezos, Solana, and Cardano are rallying.