According to a new report from crypto exchange Coinbase, Ethereum (ETH) is now the undisputed leader in the altcoin space despite the rise of challengers such as Solana (SOL). But how can Ethereum continue to maintain this leading position against the rising power Solana and other cryptocurrencies?
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Ethereum remains the king of altcoins
According to Coinbase, the Ethereum network currently has a whopping 57% of the Total value locked (TVL) owns the entire crypto market. The market capitalization of Bitcoin (BTC) is much larger than that of Ethereum. This is despite the development of Layer 2 scaling solutions and new rollup stacks. Interestingly, these Layer 2 solutions compete with alternative Layer 1 platforms rather than impacting Ethereum, according to Coinbase.
According to an analysis by JPMorgan, the future is bright for Ethereum and it is predicted that it may even overtake Bitcoin. This optimistic assessment is supported by the planned major modernization, which is expected in the first half of 2024. This upgrade is critical to the scalability and efficiency of Ethereum, especially for Layer 2 networks like Polygon (MATIC).
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The Rise of Solana
At the other end of the spectrum is Solana. A coin that has attracted a lot of attention recently due to its potential but also due to the huge recent price increases.
Solana’s transaction speed and scalability are considered a serious threat to the Ethereum network. Solana offers faster and cheaper transactions than the incumbent Ethereumeu. Additionally, Solana’s DeFi ecosystem has seen steady growth and recently reached a new annual high in total value locked on the network. These factors contribute to the narrative that Solana could outperform Ethereum in future bull markets, especially in areas that require high throughput.
In any case, it is still a thing of the future and according to Coinbase, Ethereum will continue to be ahead in 2024, with an even more optimistic forecast from JPMorgan, which expects ETH to grow even faster than BTC.
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