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Cryptocurrency is a hot topic. With millions of investors worldwide, many people don't truly understand the components of their investment. Basic knowledge is ideal. If you can expand this knowledge further, then this is beneficial.
Given that digital assets are so volatile, knowing what drives this action will help you better prepare for a practical investment strategy.
There are thousands of altcoins on the market today. An altcoin is simply any cryptocurrency that isn't Bitcoin. For example, Ethereum is the second biggest cryptocurrency by market cap. This means, by proxy, it is the biggest altcoin on the market today.
You can use Ethereum, the most famous altcoin, for several different purposes. Many developers use its secure and highly reputable blockchain to launch their projects, while iGaming enthusiasts use it to deposit funds on cryptocurrency casinos, which is a new and emerging digital gaming area. Finally, if you're keen on the idea of utilizing crypto for entertainment purposes, you can indulge in live dealer games and enjoy various welcome bonuses.
It has become popular due to its ability to facilitate the development of distributed applications (dApps) and smart contracts. Today, we will explore Ethereum's dominance in the altcoin market.
What Is Ethereum & Why Is It Such A Dominant Altcoin?
Ethereum is a decentralized, open-source blockchain platform that provides a facility for users to create and manage smart contracts and decentralized applications (dApps).
It was created in 2015 by Vitalik Buterin, a Russian-Canadian computer programmer. Part of the development team consisted of Gavin Wood and Charles Hoskinson, who went on to make altcoins that we will discuss today as potential rivals to Ethereum.
The innovative project provides users with a secure platform for buying and selling digital assets and creating their projects and tokens, as discussed in the introduction.
With its wide range of features, Ethereum has become one of the most popular platforms for developers. In addition, some investors have made incredible profits from investing in cryptocurrency early enough.
Will Ethereum Continue To Dominate?
The King of altcoins has made some huge moves in the cryptocurrency space. It has joined forces with some giant corporations worldwide as part of the Enterprise Ethereum Alliance. It remains the most reliable blockchain for promising projects in the digital asset space.
Ethereum went from $150 per token in August 2020 to its all-time high price of over $4,500 just over a year later in November 2021. Some commentators think it could explode in price this year.
Given it's taking up such a massive piece of the market and has plenty of loyal fans and, more importantly, market reputation, it isn't easy to see any other altcoin challenging this dominance. So let's look at a few promising projects that could give Ethereum a potential run for its money.
The Chasing Pack
Ironically, two of the prominent altcoins that people feel have much scope for growth were designed by two of the original developers on the Ethereum team back in 2015. Charles Hoskison split from the project and went on to develop Cardano (ADA).
Cardano (ADA)
Cardano is a blockchain-based platform that enables users to store, transfer, and manage digital assets securely. It is an open-source project that Hoskinson and the Cardano Foundation designed in the same year Ethereum launched.
Hoskison attempted to divert away from Ethereum and his ties to the project by developing Cardano with a core focus on scalability, interoperability, and sustainability.
The platform uses a proof-of-stake consensus algorithm to ensure the security of its network and transactions. Cardano also provides users with access to smart contracts, decentralized applications (dApps), and other features that bring a lot of utility and respectability to the project.
It's unlikely to knock Ethereum off the top, but it has plenty of utility that could see it thrive for many years.
Polkadot (DOT)
Another detached member from the original Ethereum development crew also looked to develop their project. Gavin Wood focussed on data as the key sales point for his project.
Polkadot (DOT) is a blockchain protocol that enables reliable, effective and lucid data transfer. The main selling point for Polkadot is its interoperability between blockchains, allowing them to communicate and share data.
Wood has developed a project that bridges across different blockchains instead of being focussed on one, and it is one of the most innovative projects in cryptocurrency.
Polkadot also provides scalability, allowing investors to benefit from more efficient transactions in less time. The protocol is powered by its native token DOT.
You can use DOT to pay transaction fees, and the project rewards validators who secure the network. This allows for a more extensive community, especially with an advanced staking system with an integral decentralization focus.
Conclusion
Notable contenders to Ethereum's dominance include XRP, the only cryptocurrency to take Ethereum's place as the second biggest digital asset since 2015. However, it is currently in a lawsuit with the SEC in America.
However, if they win, it'll propel the price of the cryptocurrency right back into the higher echelons. To conclude, it's improbable Ethereum will lose its spot in second place. If anything, Ethereum could flip Bitcoin. Polkadot and Cardano are great projects, but Ethereum is a colossus.
