The Battle of Cryptocurrencies

Last Modified:18 Mar 2021 05:47:28
The Battle of Cryptocurrencies

The Battle of Cryptocurrencies; Will Ethereum Surrender to the Competitors?

In a decentralized and free market such as cryptocurrencies, forming competition among members seems highly rational. Such a competition is necessary to reach puberty and equilibrium in every market. The reason is that competition in the market among its active members gives the investors a choice. Ethereum which is one of the well-known cryptocurrencies in the world appeased its competitors in recent months and it sounds it is losing its market share. Ethereum faced the value drop in 2018 like other cryptocurrencies, and we have witnessed lowering Ethereum market bloom with developing the projects which are active on the Blockchain platform.

Ethereum in Failure Pathway?

Different reports show that the degree of the investors and users’ interest in Ethereum has decreased and by the advent and activity of different decentralized applications which came to the market, the market share of Ethereum has had a considerable drop. However, what is the reason of the movement of program developers and decentralized applications from Ethereum platform to the other platforms? What caused investors and users not completely shift to Ethereum? The fact is that cryptocurrencies price drop has led the activists in this field to become aware of other aspects and capacities of Blockchain and decentralized systems besides commercial and financial issues and focus their measures not only on cryptocurrencies but also on designing other various projects which have the chance to be developed on the decentralized platform.

Replacement of Other Applications and Ethereum Sidestepping

Among the other major reasons which have caused the users’ welcoming decentralized applications rather than Ethereum is its more speed. These new applications do a transaction in a few seconds. As a result, the number of operations which can be conducted in their platform is much more than that of Ethereum. Of course, this issue, i.e., the increase of the customers and users’ experience quality in other platforms and applications, has caused Ethereum to think about serious solutions to upgrade and speed up its system. It is one of the major advantages of competition in this market; that is, as the competitors grow, they make all activists think about their status and attempt to develop their competitive advantages more.

Knowing Main competitors of Ethereum

According to the report and based on the claim of well-known and credible media Bloomberg, Ethereum is in a strong competition with TRX and EOS. The competition which apparently goes ahead to the advantage of these two cryptocurrencies. Ethereum entered the cryptocurrency market in 2015. Offering the possibility of developing decentralized applications and forming smart contracts on Ethereum platform separated it from other cryptocurrencies of that time like bitcoin. However, gradually with the emergence of platforms like Ethereum activities, the task of these newcomer cryptocurrencies got a little harder.

Russian Vitalik Buterin, the clever inventor of Ethereum, believes too that this platform and cryptocurrency has faced a drop in recent months and consider it very natural. In his opinion, such a recession makes a part of the evolution of the cryptocurrency world. The existence of energetic competitors can cause Ethereum’s retrieval and improvement to a large extent.