What “Ethereum killers”? On-chain data shows that competitor networks continue to lag behind


Ether (ETH) remains the second largest cryptocurrency and absolutely dominates the smart contract industry based on a number of network usage metrics. Although the network has been hit by a spike in activity that is causing average fees to exceed $ 10, the network effect of its large user and developer base appears to be enough to maintain its position as the second largest cryptocurrency by capitalization. market.

However, some key on-chain metrics are starting to show a possible shift in Etheruem’s supremacy, raising the age-old question of if an “Ethereum killer” will be able to dethrone the network.

Classification of smart contracts by total blocked value (TVL). Source: defillama.com

As shown above, the Ethereum network widely dominates decentralized applications (dApps). Due to its high gas rates for transactions, when analyzing the number of active addresses, the Ethereum network appears to be at a disadvantage compared to its competitors.

During last week, FLOW’s NBA Top Shot had nearly 80,000 active addresses, which is five times larger than Ethereum’s Rarible non-fungible token market or even SushiSwap. Therefore, the first piece of information to analyze is the number of daily active addresses on each blockchain.

Active addresses daily. Source: coinmetrics.io

The graph above shows that Tron (TRX) has recently outperformed Ethereum in daily active directions, although this metric can easily inflate. The Tron network has practically zero fees for simple transactions, which creates an unfair comparison.

When evaluating actual transactions and transfers, it is easier to exclude addresses that do not contribute to the network.

Adjusted amount of transactions and transfers, in USD. Source: coinmetrics.io

By doing this we can see that Tron doesn’t even come close to Ethereum’s numbers, although recent Cardano (ADA) price growth has led to a virtual tie between the two.

Curiously, the Tron network has more than 14.5 billion Tether (USDT) in circulation, which by itself should drive network usage metrics. Meanwhile, Cardano has 90% fewer daily active addresses than Ethereum, and yet both networks handle the same amount of transfers and transactions.

This is especially troublesome, because Ethereum handles 20 billion Tether tokens and also handles all Chainlink (LINK), USD Coin (USDC), Wrapped ETH (WETH) transactions and many.

Market capitalization of ETH, ADA, NEM, NEO and TRX, in millions of dollars. Source: cointrader.pro

These data should, theoretically speaking, be reflected in the market capitalization. So it makes sense for Ethereum to dominate the rankings, as no other network even comes close to its decentralized applications.

Also, when analyzing the value of transfers and transactions, Ethereum leads by 50 times if we exclude the questionable Cardano figures discussed above.

At the moment, the data suggests that the four “Ethereum killers” discussed above are unlikely to outperform the Ethereum network in the short term.

The views and opinions expressed here are solely those of the carr and do not necessarily reflect the views of Cointelegraph. Each investment and commercial movement involves risks, you must do your own research when making a decision.

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