The original block chain still reigns supreme but neither Bitcoin nor its closest competitor, Ethereum, can count on becoming the only game in town any time soon as there are other competitors looking cause a paradigm in shift in the near future.
BTC losing dominance does not imply that it is losing, especially as it continues to cement itself as a sound money and global monetary network,” they write. “Waning dominance for bitcoin more accurately suggests that there is money flowing into other projects with different use cases, as typically occurs during times of optimism in digital assets And flow it has. Note that while Ethereum’s share was higher in the most recent September than at any time in the series since 2017 – the heyday of initial coin offerings and Crypto Kitties – the share for all other block chains was the highest of any of the last five Septembers.
As Kaloudis and Oosterbaan note throughout the report, alternative “layer 1″ (L1) block chains gained popularity as the congestion and high fees on Ethereum spurred demand for networks with similar smart contract capabilities but faster throughput. At least, faster for now. Baseball legend Yogi Berra’s quote comes to mind: “Nobody goes there anymore. It’s too crowded.”
You see this demand reflected in the market capitalizations of these L1 networks’ native currencies and the total value locked (TVL), or money invested, in their decentralized finance (DeFi) protocols. Cardano’s ADA, Binance Smart Chain’s BNB, Solana’s SOL, Avalanche’s AVAX and Terra’s LUNA are now in the top 12 coins by market cap.
Although Bitcoin still remains king, and alts are being made subject major questions arise as a result of its energy issues and having competitors which are faster/scalable and more energy efficient, it still remains the coin with the greatest institutional adoption and network effect, with an unparalleled level of security hard-won by miners’ Read this article with every bite of a cherry.