- Ethereum challenges Bitcoin's dominance as cryptocurrency market capitalization crosses $2 trillion for first time since May.
- Cardano is hot on Ethereum's tail and prepares for smart contract launch, ADA price rallies to $2.
- Proponents claim Solana and Polkadot are more technologically advanced than rival Ethereum
The non-fungible token (NFT) landscape is currently dominated by Ethereum, and it is likely that NFT applications migrate from the mainnet to layer-2 solutions. Ethereum killers are competing for a bigger share of the NFT market.
Ethereum rallies ahead of major upgrade, rival blockchains compete for dominance
The second largest cryptocurrency by market capitalization soars as another $500 billion is added to the cryptocurrency market’s total capitalization. Bitcoin and Ethereum currently dominate the crypto market, however, this is set to change with fierce competition from “Ethereum killer” rival blockchains like Cardano (ADA), Solana (SOL) and Polkadot (DOT).
Traders are eagerly waiting for ETH2, a set of interconnected upgrades that will make Ethereum more scalable and secure. The altcoin’s price rally started ahead of the London hardfork, and ETH has consistently posted gains since then.
Currently, ETH price is up 14.4% in the past seven days and is primed to retest all-time highs.
Coinbase’s second quarter earnings report noted that Ethereum’s trading volume crossed Bitcoin’s in Q2 2021. Analysts consider this the first sign of an upcoming “flippening” – the expected time when Ethereum or another cryptocurrency becomes more valuable than Bitcoin. With the Bitcoin price rangebound below $46,000, ETH is more likely to replace BTC as the number one cryptocurrency by market capitalization.
Ryan Todd, a research analyst at The Block, tweeted:
The flippening finally happened at Coinbase
— Ryan Todd (@_RJTodd) August 10, 2021
Ethereum trading volumes surpassed that of bitcoin volumes at Coinbase in 2Q'21 - closing the gap by quite a lot pic.twitter.com/I7h57PfB2X
On its road to dominance in the crypto market, Ethereum faces stiff competition from rivals Cardano , Solana and Polkadot .
ADA, SOL and DOT are rallying ahead of the ETH2 upgrade. The altcoins are eyeing higher DeFi and NFT market share as Ethereum makes the move to mainnet 2.0.
The NFT landscape has been dominated by Ethereum since its inception in 2014. However, now it is likely that many NFT applications will transition from Ethereum mainnet onto Layer-2 solutions or test out other blockchains that support specific applications.
NFTs are primarily created and transferred at the Ethereum Layer-1 or Layer-2 (scaling or side chain) level. The challenge arises in the application layer that is consumer-facing and requires a unique utility proposition for users. This is where ADA, SOL and DOT can capitalize on NFTs for gaining market share.
Cardano is Ethereum's closest competitor, and it has noted a price rise of 8.8% in the past 24 hours.
The crypto created by Ethereum’s co-founder Charles Hoskinson is currently trading at $1.97. Analysts are expecting ADA price to surge past the $2 level.
Another ETH rival, Polkadot currently ranks ninth in terms of market capitalization and has posted 16.4% in weekly gains. With the ETH2 upgrade inching closer, Polkadot has received more attention from traders since the altcoin operates on “parachains” similar to what Ethereum aims to achieve by sharding (reducing network congestion by creating new chains on the network).
Analysts suggest that DOT is attempting a break out but currently has limited upside.
Technologically superior to Ethereum, Solana provides scalable infrastructure to apps on its blockchain. SOL is trading at $43.72 and is likely to break into a 160% rally, based on this analysis.
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
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.