05 Oct Solana, Cardano, and Polygon are gaining ground on Ethereum

Nowadays, businesses are looking towards platforms like Cardano, which is used to create decentralized applications, and Solana, which has grown by almost 4,800% since September 2020.

In September, investors who staked a lot of money on ether, the ethereum blockchain’s currency, had a bad month.

After a 16 percent loss, Ether’s monthly fall plummeted to its second-largest level since June. Bitcoin, the first cryptocurrency, lost roughly 7% in September.

A dip was predicted after the record surge in crypto during the previous 12 months. Short-term price fluctuations, on the other hand, are difficult to relate to a specific event. Ethereum’s value has grown by approximately 830 percent in the last year, making it the second-highest by market value.

Investors are now buying the September price drop. On Friday, the first day of October, both ether and bitcoin soared over 9%.

The wild journey in September, on the other hand, indicates a particularly difficult period for Ethereum and is generating anxiety among investors and engineers.

High transaction fees and sluggish network speeds are still an issue. Despite the London upgrade in August, transaction fee volatility has remained rather stable.

Meanwhile, competing blockchains dubbed “ethereum killers” are taking advantage of ethereum’s flaws.

Nonetheless, Ethereum, which serves as the foundation for a wide range of crypto projects like non-fungible tokens (NFTs), smart contracts, and decentralized finance (Defi), confronts significant competition.

As a result, businesses are looking towards platforms like Cardano, which is used to create decentralized apps, and Solana, which has grown by almost 4,800% since September 2020. Solana is gaining momentum in the NFT and Defi eco-systems because of its lower pricing and faster usage than ethereum.

Solana claims to handle 50,000 transactions per second at a cost of $ 0.00025 per transaction on its website. Ethereum’s transaction speed is restricted to around 13 transactions per second, and its costs are far higher than those of Solana.

Institutional funds are flowing in. Solana raised $ 314 million in a token sale spearheaded by Andreessen Horowitz and Polychain Capital.

Alternative blockchains like Tezos, Solana, and Cardano are gaining traction as investors diversify away from ethereum.

Bugs can also be found on the blockchain. Last month, Solana was hit by a denial-of-service assault triggered by bots spamming transactions.

Matic and Polygon, both complimentary and new technology, as well as Cardano, which is well recognized for its security, are among the so-called ethereum killers.