Market stagnation contributes to the better positioning of leading altcoins.
Before the market crash, the DeFi platforms Cardano (ADA) and Solana (SOL) had shown steady gains for several weeks. They have come to be called “Ethereum killers” as they outperform the leading altcoin in speed, scalability, and functionality.
An impressive situation has been formed by Cardano (ADA). ADA has grown over 1800% since the beginning of the year. On January 1, the coin was worth $0.18, and on September 2, it set an all-time high of $3.1. Cardano is a direct competitor to Ethereum. Its founder, Charles Hoskinson, was also a co-founder of Ethereum.
Last year, a Shelley upgrade was launched on the Cardano blockchain that made it “50-100 more decentralized than other blockchains.” And in September 2021, the Alonzo upgrade added the ability to launch smart contracts and create decentralized applications (dApps). It was this upgrade that caused strong growth in the ADA.
SOL’s skyrocket is even more impressive. The coin has grown 173 times, from $1.5 at the beginning of the year to $260 on November 6. The maximum growth has occurred since mid-August. Then SOL cost about $43. During this time, the Ethereum network was experiencing some problems despite the London upgrade. Competitors Ethereum got a good opportunity to attract the attention of both investors and developers.
Solana’s network has good scalability with a combination of Proof-of-History and Proof-of-Stake consensus algorithms, while Ethereum is still halfway to Proof-of-Stake (PoS). Until this transition is performed, the number of Solana supporters could grow significantly. Therefore, institutionalists began pouring funds into SOL now, hoping for a large ROI, return-on-investment.
Chamath Palihapitiya, CEO of venture capital firm Social Capital, recognizes bitcoin as digital gold and Ethereum as digital silver. But at the same time, he believes that investors need to be realistic about the functionality and usefulness of projects before investing money. The expert notes:
– Solana could be the first – but there will be others that come after it – of real developer ecosystems that can be built on top of it.
Among the projects that create cool ecosystems for development, the leading place is now taken by Avalanche (AVAX). The platform was created to solve the problem of interoperability between various crypto assets, it is ready for launching smart contracts and creating dApps. AVAX token skyrocketed to an all-time high of $110 after news about Ava Labs’ partnership with the largest consulting firm Deloitte. Since mid-August, AVAX is up more than 500%.