Despite Its $25B Market Cap, Ethereum Can Still Be Dethroned

Monday 8 June 2020, 8:56 AM AEST - 1 week ago

For years, Ethereum has easily been the leading smart contract blockchain. With mass adoption by service providers, brand recognition, and a series of popular apps, it leads in its category.

Yet this hasnt stopped some from speculating that the cryptocurrency can be dethroned by an upstart.

Ethereum Could Be Dethroned By Another Blockchain, Analyst Says

Due to a rapid increase in the adoption of decentralized finance, the Ethereum user experience has arguably gone downhill in recent weeks.

Head of Business Development at Krakens futures division, Kevin Beardsley, recently commented on Ethereum fees:

I have spent $14 on ETH gas fees to transfer/lock my $15 into @CurveFinance and Im earning a princely $0.079 in weekly $SNX rewards. Ill break even in just 177 short weeks! (not including gas to close contracts.

Transaction fees are now so high that v, the median ETH transaction fee is around a two-year high.

Although this is not yet a chronic problem, some have begun to speculate as to what effect consistently high fees will have. Joseph Todaro of BlockTown Capital wrote:

If fees move higher or even maintain this level, I expect $ETH competitors focused on scalability to see increased attention.

Qiao Wang, a former executive at Messari and a noted crypto analyst, echoed Todaros comment.

He said that after using DeFi platforms, which can cost dozens of dollars, he isnt convinced Ethereum will succeed in its current form:

So long as ETH 2.0 is not fully rolled out, theres an obvious opportunity for a highly scalable blockchain to dethrone Ethereum. Paying $10 transaction fee and waiting 15 seconds for settlement is just bad UX.

Wangs criticism of Ethereum is similar to that of others.

Kyle Samani of Multicoin Capital also touched on Ethereums high fees and slow transaction times. As reported by Bitcoinist, the venture capitalist and fund manager said that Ethereums current state disallows the creation of global-scale trading systems.

He thus added that DeFi is likely reaching a plateau due to the latency i ...

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