- Ethereum challenges Bitcoin’s dominance. The market capitalization of cryptocurrencies surpasses the $ 2 trillion mark for the first time since May.
- Cardano is hot on Ethereum’s heels as it prepares to launch smart contracts; the ADA price rises to over $ 2.
- Proponents claim that Solana and Polkadot are more technologically advanced than competitor Ethereum.
The non-fungible token (NFT) landscape is currently dominated by Ethereum, and NFT applications are likely to migrate from the mainnet to Layer 2 solutions. The Ethereum killers are competing for a larger share of the NFT market.
Ethereum rises ahead of major upgrade – rival blockchains compete for supremacy
The second largest cryptocurrency by market capitalization is increasing as the total capitalization of the cryptocurrency market increases by another $ 500 billion. Bitcoin and Ethereum currently dominate the crypto market, but this could change in view of the strong competition from competing blockchains such as Cardano (ADA), Solana (SOL) and Polkadot (DOT), which are known as “Ethereum killers”.
Traders are eagerly awaiting ETH2, a series of interconnected upgrades that will make Ethereum more scalable and secure. The Altcoin price rally began even before the London Hardfork, and ETH has grown steadily since then.
Currently, the ETH price has risen 14.4% in the last seven days and is ready to hit its all-time high again.
Coinbase’s earnings report for the second quarter found that the trading volume of Ethereum exceeded that of Bitcoin in the second quarter of 2021. Analysts see this as the first sign of an impending “flippening” – the expected point in time when Ethereum or another cryptocurrency will become more valuable than Bitcoin. With Bitcoin price hovering below $ 46,000, it is more likely that ETH will overtake BTC as the number one cryptocurrency by market capitalization.
Ryan Todd, research analyst at The Block, tweeted:
The flippening on Coinbase is finally here
Ethereum trading volume exceeded Bitcoin volume at Coinbase in 2Q’21 – the gap closes a whole lot pic.twitter.com/I7h57PfB2X
– Ryan Todd (@_RJTodd) August 10, 2021
On its way to dominance in the crypto market, Ethereum faces strong competition from competitors Cardano, Solana and Polkadot.
ADA, SOL and DOT increase in advance of the ETH2 upgrade. The Altcoins are aiming for a higher DeFi and NFT market share as Ethereum takes the step towards Mainnet 2.0.
The NFT landscape has been dominated by Ethereum since its inception in 2014. Now, however, it is likely that many NFT applications will move from the Ethereum mainnet to Layer 2 solutions or test other blockchains that support certain applications.
NFTs are primarily created and transmitted on the Ethereum Layer 1 or Layer 2 level (scaling or side chain). The challenge arises at the application level, which is consumer-centric and offers unique benefits for users. Here ADA, SOL and DOT can use NFTs to gain market share.
Cardano is Ethereum’s closest competitor and has seen its price rise 8.8% in the past 24 hours.
The cryptocurrency created by Ethereum co-founder Charles Hoskinson is currently trading at $ 1.97. Analysts expect the ADA price to rise above the $ 2 mark.
Another ETH competitor, Polkadot, currently ranks ninth in terms of market capitalization, posting weekly gains of 16.4%. With the approaching ETH2 upgrade, Polkadot has received more attention from traders as the altcoin works with “parachains”, similar to what Ethereum seeks to achieve through sharding (reducing network congestion by creating new chains on the network).
Analysts believe DOT is attempting a breakout but has limited upside potential right now.
Technologically superior to Ethereum, Solana offers a scalable infrastructure for applications on its blockchain.