Known as the Ethereum killer Cardano (ADA)had recently launched its first ERC-20 converter. Ethereum killers Polkadot, Solana, and Cardano experienced a surge in interest and on-chain activity in 2021.
On the other hand, DeFi (decentralized finance) projects continue to migrate from the Ethereum network to Solana or Avalanche for cheaper and faster transactions.
Analysts, on the other hand, predicted a drop in Ethereum price, noting all the developments, as well as red flags for altcoins in the current cycle.
As Ethereum moves towards “merging,” or the transition from proof-of-work to proof-of-stake, experts believe Cardano, Solana and Polkadot could outperform ETH2.
Cardano, Solana and Polkadot can outperform ETH2.
Experts believe that Ethereum’s transition to Proof-of-Stake (PoS) could allow the altcoin to attract millions of new users. However, by 2021, layer-1 solutions witnessed an increase in on-chain activity and transactions. Avalanche and Polygon recorded 435% and 125% growth in daily active addresses from September 2021 to the end of the year.
The increase in daily active addresses indicates increased investor interest in Tier-1 scaling solutions. Experts predict that the merger will increase active users and transaction volume on the Ethereum network.
The fundamental improvements implemented by the consolidation are expected to reduce the transaction cost in the network. However, it is unclear whether moving from one consensus mechanism to another will help the Ethereum network compete with emerging layer-1 scaling solutions.
Popular as an Ethereum killer, Cardano recently released its ERC-20 converter. The community will now have the ability to bring ERC-20 tokens from Ethereum to the Cardano network.
The Ethereum killer blockchain has revamped its network to issue contracts at higher capacity.
@FeraSY1, a crypto analyst and educator, believes the drop in Ethereum prices is a red flag. The analyst states that the current cycle’s falling altcoin prices are a red flag for cryptocurrencies.
Such disastrous performance for #altcoins, even for the best ones like $ETH is a big red flag for me not to blindly hodl cuz u NEVER know when things flip upside down, and the moment bear market confirmation kicks in, it will be toooo late to take any protective action
tbc👇🏻
— Crypto Feras (@FeraSY1) December 30, 2021
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.