It is clear that Ethereum (ETH) is currently facing a lot of competition in the cryptocurrency market. It is not as easy as before to be one of the top virtual currencies. There are several projects that are growing and threatening Ethereum’s dominance.
Although Ethereum continues to dominate the Initial Coin Offering (ICO) landscape, the situation does not look so positive for the future. The network has different scalability and speed problems that need to be solved, and developers seem to be struggling with this issue.
Now, ICO teams can start their projects in many different platforms such as EOS, NEO, VeChain, Stellar, Tron and many others. This is good in terms of development because each of these projects wants to offer the best solutions for users.
One of the latest projects that were released to the market is Kin. This virtual currency and blockchain network was launched by the Kik company that operates Kik Messenger with 300 million users around the world. Although it was launched on the Ethereum platform, Kik announced that it will close kin’s atomic swap with Ethereum.
Stellar is also one of the largest blockchain networks in the cryptocurrency market. It has an easy-to-use token and a system that is permissionless and accessible to everyone. At the same time, Stellar has built-in-token capabilities that support multi-language signature authorizations, and more.
Furthermore, Sellar’s token can be traded without having to rely on a third party exchange. Moreover, compared to Ethereum, Stellar offers faster and cheaper transactions.
Back at the beginning of the year, the ICO Mobius was distinguished because it was one of the most extensive networks in the market and it was carried out on the Stellar network. Nevertheless, Ethereum offers a very good infrastructure for developers to create a token, carry out an Initial Coin Offering, or create a new blockchain network.
Ethereum’s dominance is being eroded by new competitors that are entering the market. This does not mean that Ethereum will disappear, but developers will have to work harder if they want to help Ethereum remain competitive.
With the scaling issues that Ethereum is facing and the problems related to the transition between PoW to PoS consensus, other networks are starting to grow and take a place that was before completely owned by Ethereum.
It is also worth mentioning that Ethereum lost the second position in the crypto market after XRP was able to surpass it in terms of market capitalization. This also shows that the sentiment around Ethereum is not as positive as at the end of the last year.
At the time of writing this article, Ethereum has a market capitalization of $12.31 billion and each ETH can be purchased for $119 dollars. Stellar Lumens (XLM), instead, is the fifth largest cryptocurrency with a market cap of $3.07 billion and a price per coin of $0.16 dollars.
Although Stellar is growing, it still has a long way to reach the top 3 and surpass Ethereum.