Ethereum is struggling to break to a new price level. In the meantime, some of the coins dubbed as «Ethereum killers» are rising quickly. Why? Does this signify the end of the Ethereum era?
The term Ethereum killers refers to blockchain platforms that offer alternative solutions to Ethereum’s capabilities—typically with enhancements in speed, scalability, or fees. While Ethereum remains a formidable player in the realm of smart contracts and decentralized applications (dApps), recent market dynamics indicate a surge in the popularity of several competing platforms.
Let’s explore the reasons behind the rise of these so-called Ethereum killers, the challenges Ethereum faces, and highlight the top five rising contenders in this competitive space, including their market cap dynamics.
Is This the Stagnation of Ethereum or Just Small Hiccups?
Ethereum has historically been the leading platform for decentralized applications and smart contracts, effectively setting the standard for blockchain technology.
However, despite its dominant position, ETH has faced several challenges that have contributed to its recent stagnation. As of December 2024, ETH's price has seen limited growth compared to other cryptocurrencies, struggling to break above critical resistance levels around the $3,500 mark.
Its market cap is now around $427B, and Ethereum remains world’s second biggest crypto. But its distance from Bitcoin is not shortening, while Ethereum killer are already sharpening their knives.
Several factors contribute to this stagnation:
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Scalability Issues: Although Ethereum 2.0 aims to transition the network to a proof-of-stake model, scalability issues remain a concern. High gas fees and network congestion during peak usage periods continue to deter new users and developers from adopting the platform.
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Market Sentiment: Recent market trends indicate a preference for newer platforms that offer lower transaction fees and faster confirmation times. As investors seek opportunities for higher returns, many have shifted their attention to these emerging technologies.
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Increased Competition: The rise of competing blockchains that offer innovative features and enhanced user experiences has created a challenging environment for Ethereum. Many developers are choosing to build on these alternative platforms rather than sticking with Ethereum.
In the meantime, Ethereum fans still some aces in their sleeves.
Traders are flooding into Ethereum-related derivatives, and the market is pricing in higher ETH prices as a result. Ethereum blob usage is also on the rise.
According to data source CoinGlass, the cumulative open interest in perpetual and standard futures contracts has reached a record 6.32 million ETH, valued at over $27 billion. This represents a 17% gain month-to-date.
The price of ether has increased by 36% to $3,500 this month, which is considered to be evidence of an uptrend when open interest increases at the same time as the price. Actually, it's keeping pace with the price increase of Bitcoin, the market leader. In the end, it wasn't so bad.
Sources indicate that on Binance, OKX, and Deribit, three offshore exchanges, the premium—the difference between spot prices and three-month Ethereum futures—has grown to an annualized 16%. The Chicago Mercantile Exchange's front-month premium, meanwhile, has increased to 14%.
Thus, ETH proponents insist the cryptocurrency is not dead yet. Plus, it's hard to find fault with their optimism.
Top 5 Rising Ethereum Killers
Here, we will examine five of the most prominent Ethereum killers that have gained significant traction in recent weeks, noting their market performance and the reasons for their rising popularity.
XRP
Ripple’s XRP has become a true sensation of the current bull run. If you were waiting for true signs of the altseason, XRP’s behaviour is definitely one of them.
XRP has shown remarkable growth recently, with its price skyrocketing about 400% in the last few weeks to around $2.6. Having flipped Solana and USDT, XRP is now third among the biggest cryptos with a market cap of #136B.
The positive momentum follows favorable legal developments, where XRP received supportive rulings in its ongoing case with the U.S. Securities and Exchange Commission (SEC). This legal clarity has attracted renewed interest and investment. The platform's focus on cross-border payment solutions positions it as a viable alternative to Ethereum for certain use cases.
Anticipation of a potential U.S. spot XRP ETF has driven inflows into XRP funds, with a record $95 million in net weekly inflows.
Solana
Solana has been one of the most dynamic players in the blockchain space, boasting a market cap of around $103 billion.
Over the past month, SOL's price surged by nearly 46%, driven by its unique Proof of History consensus mechanism, which allows for exceptional transaction speeds and low costs. The increased adoption of DeFi applications and NFTs on the Solana network has contributed significantly to its growth.
Solana had flipped BNB and briefly settled as world’s fourth crypto. Experts began to weigh in about SOL’s chances to flip USDT and go the third place. But then XRP arrived to the top of its game (see above).
Anyway, the recent announcements of partnerships and integrations with major platforms have bolstered investor sentiment and engagement. Solana is one of the most serious Ethereum killers.
Cardano
Cardano has experienced a resurgence, with its price rallying approximately 260% in the last month, reaching around $1.20.
The renewed interest is largely attributed to the successful implementation of the “Hydra” scaling solution, which promises to improve transaction speeds and reduce costs. With a market capitalization of approximately $41 billion, Cardano's focus on academic research and peer-reviewed development has attracted a dedicated community and investor confidence.
Tron
Tron has seen a price increase of about 48% recently, with the current price hovering around $0.23. TRX now has a market cap of $20 billion, which is rather impressive.
The platform's ability to support high throughput and cost-effective transactions has made it an appealing choice for developers looking for an Ethereum alternative.
The recent launch of various DeFi projects on the Tron network has also sparked interest among investors, enhancing its credibility in the blockchain ecosystem.
According to Google Trends, searches for the Tron token surged to a three-month high, corroborated by other data sources.
Avalanche
Avalanche has gained significant traction, marked by a price increase of approximately 120% in the past month, currently standing at around $49.
With a market cap of about $20 billion, it comes as a strong competitor to Ethereum.
Avalanche’s unique consensus mechanism offers rapid finality and scalability, attracting developers to build decentralized applications. Its robust DeFi ecosystem and partnerships with gaming projects have contributed to its growing popularity.
Closing Thoughts
Ethereum may have cemented its position as market leader, but the emergence of competitors like Cardano, Solana, XRP, Tron, and Avalanche shows that both investors and developers are looking elsewhere.
These alternatives have a good chance of succeeding because of Ethereum's problems with scalability, competition, and public opinion. To keep its dominant position in the blockchain space as the market changes, Ethereum must fix its shortcomings and innovate.
In any case, the altcoin king, Ethereum, is far from dead. But the killers are sharpening the knives.