- Ethereum, the second-largest cryptocurrency by market cap is losing steam.
- Investors are moving to Solana, and Cardano.
Investors are moving to Solana, and Cardano as the second-largest cryptocurrency by market cap shows signs of continued weakness. This is because investors who bet their money on Ether had a harsh month in September.
The inclination from Ethereum pushes investors to look into platforms such as Cardano, which is used for DApps building. And Solana, which has recently drawn the attention of the crypto community with a growth of nearly 4,800% in just a year.
According to data from CoinMarketCap, Ether’s 16% drop in last month is its second-largest drop since June. However, in the past year, Ethereum’s value has grown by about 830%.
But still, investors and developers are concerned due to the roller-coaster ride in September that shows a particularly troublesome time for Ethereum.
Despite the EIP-1559 upgrade, high transaction fees and slow network speed continue to be a problem. Meanwhile, other blockchains called “Ethereum killers” are using Ethereum’s weaknesses.
Due to its cheaper and faster price and faster usage compared to Ethereum, Solana is getting popular in the NFT and DeFi ecosystems. As per the Solana website, the platform processes 50,000 transactions per second (TPS) at $ 0.00025 per transaction. However, the speed on Ethereum is about 13 TPS, and the fees are much higher than on Solana.
Moreover, blockchains aren’t safe from bugs either. Last month, Solana was affected by a denial-of-service attack, which was caused by bots flooding transactions.