Prediction: Will this listed cryptocurrency be the next Ethereum?

Blockchain Ethereum (CRYPTO: ETH) Powered by ETH, a cryptocurrency with a market capitalization of $320 billion. Single Bitcoin you deserve more. Ethereum’s success can be attributed to its programmability. Specifically, developers can use the platform to build and deploy decentralized applications (dApps), which are software that reside on a peer-to-peer network rather than on central enterprise services.

Decentralized Finance (DeFi) products are a type of dApp. It allows investors to lend, trade and earn interest on funds without having to pay to go through a traditional bank or brokerage firm. By removing middlemen from the equation, DeFi products make financial services more efficient and accessible. Thanks to her first position, Ethereum is the largest dApp and DeFi ecosystem for the blockchain industry. But this popularity also revealed a major weakness: it lacks scalability.

With the increase in the volume of Ethereum transactions, the speed of network traffic slowed down. And because each transaction competes for limited mining power, transaction fees have skyrocketed. Of course, an upgrade is on the way to solve this problem, but scalability should not improve until 2023. Meanwhile, other blockchains have already solved this problem and are gaining a leading position in the market.

here is one encryption-Currency that can may exceed Ethereum.

Scalability keeps costs low

Avalanche (CRYPTO: AVAX) It is a programmable blockchain designed by Ava Labs. Its main innovation is the Iceman Consensus Protocol, a type of proof of stake where validators confirm transactions by sampling random nodes (computers) rather than engaging in time-consuming message exchanges with all other nodes in the network.

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This makes the avalanche very fast. In fact, with a transfer rate of 4,500 transactions per second (TPS) and a completion time of two seconds, Ava Labs believes that Avalanche is now the fastest blockchain in the world. For context, Ethereum runs around 14 TPS and takes up to six minutes to complete transactions. This lack of scalability made the platform expensive; meAverage transaction fees exceed $20 on Ethereumbut you might just pay Pennies on an avalanche.

Compatibility expands use cases

Avalanche is designed to be compatible with Ethereum smart contracts, which means developers can. Easily transfer their dApps From one blockchain to another. In fact, the stable exchange of cryptocurrency curve and loan protocol avi They are two of the most popular DeFi platforms on Ethereum, and both appeared on Avalanche in October, giving investors a faster and cheaper way to access.

Soon, the US dollar cryptocurrency Born in Ethereum (CRYPTO: USDC) – A stablecoin pegged to the US dollar – added to Avalanche in December. As the second most popular stablecoin in the crypto economy, USDC can energize the Avalanche DeFi ecosystem, as it allows people to To invest in DeFi without holding cryptocurrency a variable. For example, you can earn an annual return (APY) of 1.56% by lending USDC to Aave Now. These are orders of magnitude greater than the 0.06% paid by the average savings bank account.

These aspects can speed up their adoption

In short, avalanche is fast, cheap and compatible with Ethereum. Over the past year, this value proposition has led to rapid adoption. Daily turnover in his avalanche Crossed the one million mark for the first time in January 2022. This is an increase from a few hundred transactions per day in January 2021, and roughly equals the average of 1.2 million daily transactions seen on Ethereum so far this year.

In addition, Avalanche currently offers 175 blockchain projects — including a range of video games, NFT markets, and DeFi protocols — and ranks fourth among DeFi ecosystems, with nearly $11 billion invested in blockchain. Going forward, as dApps and DeFi products attract more developers, consumers, and investors to the platform, the demand for AVAX crypto is expected to grow, making raise its price. Given enough time, I believe the avalanche could surpass Ethereum in terms of price and popularity.

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