Ethereum is for years the leading Smart Contract Blockchain. The native crypto-currency, the Blockchain, ETH, has a market capitalization of over 25 billion dollars.
25 billion dollars, an order of magnitude higher than the market capitalization of Cardanos ADA, 2.5 billion dollars. Cardano is the main competitor of Ethereum is, of course. And 25 billion dollars are two orders of magnitude higher than the value of Zilliqa (ZIL), one of the other competitors.
Despite the dominance of the asset analysts see that Ethereum will lose in the coming years, market share to competitors. Why, that now explains a Fund Manager.
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Joseph Todaro, Managing Partner at the block tower Capital, will outperform a theory why “a lot of little known Ethereum-rivals ETH in this cycle”.
In order to explain this, he at 6. July a multi-part Thread on this topic was published.
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Todaro believes stocks in spite of his ETH-that the transaction will be fast charges, “in the height”, because Ethereum is still on DeFi a suitable product to market. “The scalability will rise again once its ugly head”, so his exact words.
High transaction fees and a limited number of users and transactions is the perfect scenario for the Emergence of a stronger competitor, a “dark horse”. As the Investor noted:
“For a long time the “dark horse” remains unnoticed. It still has its army of Iridescence that will provide a warm feeling of confidence and the certainty of success. But they will come. (…) It is once again time to look at the neglected and despised ETH-competitors.“
Todaro’s called, although not competitors. However, a serious Chance that a Protocol war is happening, if the projects aim to have the next Bull-Run, the nose of the front.
And since ADA ETH has severely beaten, he has started might just.
Graphics Cardano (ADA) vs. Ethereum (ETH) of TradingView.com
ETH is a good investment?
Although Todaro has made his remarks, apparently with the premise that it will be fine ETH still, some of this feeling is totally out of the question.
Steven McClurg, and Leah woods, CIO and VP of Portfolio management of Expontial Investments, are of the view that the Asset is not a profitable investment.
As Todaro you have taken the high Gasgebühren of Ethereum as a potential Achilles heel for the network and the ETH target:
“The the cost of gas inherent problems have led to congestion, which has a negative Power represents the externality. The Overload of Ethereum has led to a poor user experience, especially for a Trader in this very volatile environment, since your debt can be liquidated, financed positions before they can trade.“
In a previous analysis, the Duo led numerous other reasons why you prefer Bitcoin to Ethereum. Some of these reasons are:
The monetary policy of Ethereum, which could soon be through “Staking” changed erratically and without proper stability.
The network “recognizes the flexibility as a priority, and it is compromising security, speed and cost”.
“The Ethereum network requires, by nature, a much larger number of On-Chain transactions, in order to be useful.”
In the face of competition and their own problems, ETH is expected back in the coming years, wind know. However, it should not be forgotten, that in the case of Ethereum, technical improvements, and other changes that can improve the profitability of the investment and the price-to-performance ratio.