04 October 15, 2022
As DeFi becomes popular, the dominance of Ethereum and Bitcoin will wane. Altcoins like ADA, SOL, TRON, etc. would gain ground.
Ethereum Competitors are Catching Up in Popularity
Ethereum co-founder, Vitalik Buterin hosted a poll on Twitter on Friday to seek people’s opinion on which fiat or cryptocurrency they would prefer that is not ETH, in the year 2035.
Surprisingly, ADA was the most chosen option by the 600,697 participants.
Among all the options, ADA received approximately 2,52,292 votes. It was followed by BTC, which received around 2,30,667 votes.
As per the poll, the crypto community is more interested in ADA than BTC.
Unfortunately, ADA did not replicate such a performance in the market. At the moment it has posted a red candle and is trading for 1.2 USDT on Binance.
Buterin hosted another poll the same day with the same topic but different options.
In this poll, TRON was the most chosen option with roughly 1,84,036 votes, constituting 51.3% of all.
In both the polls, fiat currencies came last.
BTC Dominance is Waning
Bitcoin, the godfather of all cryptocurrencies, dominance has been fading for the past year.
In the chart below, one can observe that on July 30, 2021, BTC dominance stood at 48.91%. At the moment it is 39.62%.
At the beginning of 2021, the dominance was nearly 70%. It has halved in the past year.
But Ethereum, the second-largest cryptocurrency by market capitalization, is notorious for its high gas fees.
Owing to that, it is difficult for new users to transact on Ethereum Layer-1. That’s why they either use Ethereum Layer-2 solutions or look for other Layer-1 alternatives.
As Decentralized Finance (DeFi) becomes more popular, more competitors will emerge. When there is no central authority or Monopoly, the case of Perfect Competition is achieved. The barriers of entry are low, and anyone can start an initiative easily. DeFi aims to achieve that; the more, the merrier. But in the long term, only the robust solutions with adequate network effects will survive.