Ethereum’s rivals? Not a real threat, according to Coinbase
A new report from Coinbase looks at „Ethereum killers“ and their potential. And it concludes that they are not yet worth the weight
The Coinbase report begins by recalling why Ethereum’s rivals (ETH) have serious competition. Following the example of Bitcoin (BTC), which continues to lead the way largely because of its anteriority, Ethereum is flying by Bitcoin Bank over the decentralised applications sector, as it was simply the first to tackle it.
Ethereum’s blockchain currently weighs in at over $70 billion, far exceeding other competing blockchains. Moreover, the majority of blockchain applications are based on Ethereum, and the ERC-20 standard has been widely adopted. As the dAppRadar data shows, the ten largest dApps in terms of volume are all based on Ethereum.
Ethereum also has third party applications and development tools particularly provided. Coinbase also notes that the blockchain is very resistant to attacks, unlike Ethereum Classic (ETH) which has suffered several attacks from the 51% this year.
Ethereum’s rivals: outsiders with long teeth
Still, despite its leading position, Ethereum has credible rivals in terms of technology, and above all scalability, which is its major weak point. Moreover, certain platforms rely on simpler or more varied development tools. This was the case of Cardano (ADA), which recently announced that it wanted to open up to all programming languages.
However, there is still a long way to go. In terms of market value, Ethereum’s rivals, Cosmos, Algorand, Polkadot and the others, represent only 18 billion dollars when put together :
It should be noted, however, that Coinbase does not mention certain other major competitors, such as Eos or Tron, as these two blockchains benefit from substantial activity, although not comparable to Ethereum.
Still, according to Coinbase, offering faster or more scalable transactions is not enough to seriously threaten Ethereum. User experience and ease of access for developers will be key to being able to compete:
„If Ethereum can scale its throughput sufficiently and continue to improve its user experience, it will be difficult for another rival platform to emerge on a scale that really threatens it. »
That said, we will take this report from Coinbase with a few tweezers, since it deliberately avoids looking at some of Ethereum’s great rivals. The conclusion, however, is interesting:
„At the end of the day, we expect the technologies developed to allow applications to interact with each other, regardless of the base chain. »
This is indeed a trend that we are observing, with more and more blockchain interoperability protocols being launched. This is also what Gavin Wood concluded at the beginning of the month. He then explained that Polkadot and Ethereum were destined to coexist.