- 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