In an update earlier today, global tech conglomerate Meta shared news of its latest moves surrounding digital collectibles. From September 29th, subsidiaries Facebook and Instagram will now allow users to link their virtual wallets with their accounts and also share non-fungible tokens. Users Across 100 Countries Can Access New Meta Feature Everyone on @instagram and @facebook can now share their digital collectibles in the US, and on Instagram in the previously announced 100+ countries,” Meta announced in a tweet. https://twitter.com/MetaNewsroom/status/1575486040349245446?s=20&t=TpIDHfYcRCtVRMNrwYhWiA…
A new report from crypto exchange Coinbase reveals that Ethereum still maintains a significant advantage over its rivals. The report took a close look at the smart contracts market and made comparisons between Ethereum and other competitors in the space.
First Mover Advantage
The report begins by stating that Ethereum domination over the smart contracts sector is similar to that of Bitcoin in the crypto space. Like Bitcoin, this dominance is due to the first-mover advantage that each project had against its competitors.
Ethereum is widely regarded as the de facto smart contract for developing blockchain products and services. The majority of blockchain applications are based on Ethereum, and the ERC-20 standard has been widely adopted to develop tokens. As data from dAppRadar shows, the ten largest dApps by volume are all based on Ethereum,
The explosion of decentralized finance (DeFi) has also helped Ethereum gain a foothold in the smart contract market. Most of the top DeFi products are based on the Ethereum blockchain, and oracles platform Chainlink is built on Ethereum.
Ethereum has also been involved in developing third-party applications and development tools. Coinbase also notes that Ethereum is resistant to attacks, unlike Ethereum Classic that has suffered multiple 51% attacks this year.
Ethereum Rivals Have An Outside Chance Of Competing
Despite the strong position of Ethereum, it is not without fault. Ethereum has been plagued with rising gas fees and scalability problems. Besides, some platforms rely on simpler or more varied smart contracts. This is the case with Cardano (ADA), which recently announced its intention to open up its smart contracts to all programming languages. However, these projects have a long way to go before overtaking Ethereum.
Ethereum main rivals, Cosmos, Algorand, Polkadot, and others, have a market cap of only $18 billion when put together. This is in contrast with Ethereum that is three times bigger at $66 billion in market cap. According to Coinbase, offering faster or more scalable transactions is not enough to seriously threaten Ethereum. The report stated that improved user experience and the ease of access for developers would be key towards competing.
The conclusion is, however, interesting as Coinbase expects that future technology would allow cross-platform interactions. This trend has become noticeable in the blockchain space as more interoperability protocols have been launched. Nevertheless, Ethereum continues to stand alone at the top, and the upcoming launch of Ethereum 2.0 would only solidify its position.