After Vitalik Buterin announced a six-year plan to completely transition to Ethereum 2.0, competitors are strengthening their market positions, and ETH is declining.
Several smart contract platforms that look like direct competitors to Ethereum are using the market situation to increase their capitalization and attract users and developers. These platforms are already running on the energy-efficient Proof-of-Stake consensus, while Ethereum is just in the state of moving away from Proof-of-Work.
Last November, ETH hit an all-time high above $4.8K. But since then, the leading altcoin has been declining, dropping over 34%. The more significant drop didn’t happen due to the token burning. According to the ultrasound.money service, more than 1.5 million ETH worth more than $5 billion have been burnt on the Ethereum network.
The ETH burning was launched after the London hard fork in August 2021, part of the fees that miners received are now burned. The service also states that the most ETH was burnt as a result of transactions on OpenSea, an NFT marketplace – more than 175 thousand ETH. Almost 150,000 ETH were burnt as a result of transactions, and more than 117,000 ETH were destroyed on the Uniswap v2 crypto exchange.
However, despite the certain stability of Ethereum, its competitors are about to improve their market positions before the complete transformation of the leading altcoin’s blockchain. A crypto analyst known by the nickname Altcoin Sherpa says that three of Ethereum’s direct competitors are ready for a rally: Fantom (FTM), Harmony (ONE), and Solana (SOL).
Fantom is a highly scalable enterprise-grade blockchain. Based on technical analysis, Altcoin Sherpa predicts FTM growth in the short term by at least 10% and continued growth in the long term. Harmony (ONE) is ready to hit a new all-time high. Harmony is a blockchain for building a decentralized economy. Solana (SOL) may set a local maximum of $170, according to Altcoin Sherpa.
At least one Altcoin Sherpa prediction is confirmed by reputable research firm Santiment. It states:
– Ethereum competitor Fantom (FTM) is still showing bullish on-chain signals even as it rallies close to new all-time highs.
Since the beginning of the year, FTM has grown by 30%, from $2.26 to $2.94, and set a local maximum of $3.36 on January 17th. The all-time high of $3.48 was set at the end of October 2021.
Ethereum has dropped over 10% over the past week, from above $3,400 to $3,055.