- Cardano, known as an Ethereum-killer, has marked the launch of its first-ever ERC-20 converter.
- Ethereum-killers Polkadot, Solana and Cardano have witnessed a spike in interest and on-chain activity in 2021.
- DeFi projects continue migrating from the Ethereum network to Solana or Avalanche for cheap and faster transactions.
- Analysts have predicted a drop in Ethereum price, noting red flags for altcoins in the current cycle.
As Ethereum heads towards ‘the merge’ or the transition from proof-of-work to proof-of-stake, experts believe Cardano, Solana and Polkadot could outperform ETH2.
Cardano, Solana and Polkadot could outperform ETH2
Experts believe that Ethereum’s transition to Proof-of-Stake (PoS) could allow the altcoin to onboard millions of new users. However, through 2021, layer-1 solutions have witnessed a spike in on-chain activity and transactions. Avalanche and Polygon have posted 435% and 125% growth in daily active addresses from September 2021 to the end of the year.
The spike in daily active addresses implies increasing investor interest in layer-1 scaling solutions. Experts have predicted that the merge would increase active users and the transaction volume on the Ethereum network.
The underlying improvements implemented by the merge are expected to lower the transaction cost on the network. However, it is unclear whether the migration from one consensus mechanism to another would help the Ethereum network compete with rising layer-1 scaling solutions.
Cardano, popular as an Ethereum-killer, recently launched its ERC-20 converter. The community will now have the ability to bring ERC-20 tokens from Ethereum to the Cardano network.
The Ethereum-killer blockchain has revamped its network to release contracts at a higher capacity.
@FeraSY1, a crypto analyst and educator, believes that the drop in Ethereum prices is a red flag. The analyst notes that the current cycle's drop-in altcoin prices is a red flag for cryptocurrencies.
Such disastrous performance for #Altcoins, even for the best ones like $ETH is a big red flag for me not to blindly hodl cuz u NEVER know when things flip upside down, and the moment bear market confirmation kicks in, it will be toooo late to take any protective action
— Crypto Feras (@FeraSY1) December 30, 2021
tbc
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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
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.