According to analysts of the Coinbase exchange, the only real “ETH killer” may be Ethereum 2.0. The largest Blockchain network after Bitcoin has hosted some of the hottest trends like DeFi and NFT. However, analysts think that Ethereum can fend off even the strongest competing altcoin projects. cryptocoin.com We are giving the details as…
Analysts say leading altcoin project will retain its throne
Ethereum’s popularity has inspired a large number of competitors aiming to beat it with lower costs, faster speeds and higher throughput. Emerging “ETH killers” or layer 1 blockchains like Solana, Binance Smart Chain, or even Cardano have soared their prices with speculation that they may one day surpass the market leader. But Coinbase analysts, who provide cryptocurrency research to big investors, say that Ethereum may be able to fend off startups.
Coinbase analysts said in a recent report that as the scalability of the ecosystem increases, users of decentralized applications or dapps may avoid looking for faster and cheaper alternatives to Ethereum. Analysts say that he still expects “multiple Blockchains to coexist in the crypto market in the near term,” but that Ethereum may retain its throne. The report states:
We think that the culmination of (Tier-2) scaling solutions combined with upgrades such as Beacon Chain consolidation and sharding may limit progress for alternative (Tier-2s) in their current form.
Factor two: Proof of Stake (POS) migration
Ethereum is about to switch from the energy-intensive PoW mechanism used by the Bitcoin Blockchain to the PoS model. This will happen by merging with Beacon Chain, an active beta version of the future PoS Blockchain that is already operational. The changes will help reduce energy consumption and computational power in Ethereum. Thus, while not guaranteeing faster transactions and lower gas fees, the availability of tier 2 systems such as zero-knowledge (zk) aggregations can attract developers and encourage capital to stay in the ecosystem. Development is likely to narrow the opportunities for tier 1 alternatives in the second half of 2022, according to Coinbase analysts. Also, the scalability that can be achieved as Zk-Rollups become more widely used could be the key to the success of Ethereum 2.0. According to the report, “this will be crucial to allow the network to scale to potentially billions of users in the long run and process tens of thousands of transactions per second.”
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