• The on-chain data indicates that the network activity is increasing despite high fees.
• Ethereum 2.0 could eliminate the network’s most significant drawbacks.
• Ethereum mirrors digital exclusivity’s allure.

Ethereum has been the most popular smart contract platform. However, Ethereum’s TPS infrastructure allowed for potential network contention. As a result, every emerging blockchain with smart contract capabilities gets dubbed an “Ethereum Killer,” as they are built to challenge Ethereum’s shortcomings.

Activity is the King

When considering the chances of an “Ethereum Killer” capitalizing on Ethereum’s total market share, Felix Hartmann, partner at Hartmann Capital, mentioned that the network carries the idea of blockchain exclusivity. He underlines that Ethereum is often users’ first interaction with blockchain technology through DeFi, wallets, or NFTs. In short, Ethereum is the gateway that kickstarts blockchain trends, which the “killers” then echo.

The usability argument is supported by data from multiple analytics outputs. DappRadar noted that Ethereum was responsible for 77% in the total $10.67 billion of NFT sales recorded in Q3. The high fees charged by Opensea (roughly $9 million) in the 24 hour period at press time show that there is demand for Ethereum. Hartmann compares Ethereum fees to the downfall of “the hottest club,” showing that demand is generated by products people want to use.

Despite the community’s frustration with fees and transaction latencies, Ethereum has shown resilience in helping to develop new paradigms for blockchain usability. For example, DeFiLlama illustrates that DeFi’s TVL has reached $200 billion across all ecosystems, and Ethereum alone accounts for $140 billion of this, followed by and the Binance Smart Chain, both of which are considered Ehtereum Killers.

Flipside

• The TVL on Solana has skyrocketed despite the blockchain’s reported issues.
• Both PoS as well as PoW will be used in conjunction for Ethereum, until the merger is completed.

What Do “Ethereum Killers” Bring to the Table

VC managers that use betting mechanisms to boost their market capitalization and notoriety can take comfort in the future promise of a disruptive smart contract platform. Ethereum currently has a market capitalization of $450billion, while Binance is worth $79billion.

The “Ethereum Killer” narrative is beneficial for the market as it incentivizes innovation. Gen 3.0 blockchains are developing interoperable blockchains that represent one key factor for Ethereum’s possible fallout. These innovative technologies are still in their infancy and have yet to be proven.

Emerging blockchains are not like Ethereum. Ethereum gained industry and social capital through data security and consistency. Solana, for example, was hit with a DoS attack in 2021 that caused the network’s suspension. ETH killer, however, has launched smart contract functionality in September. However, dApps are still not created. Concerns have been raised regarding ETH killer, the first-of its-kind, and about its centralization of exploitative data.

While new blockchains are chipping away at Ethereum’s market share (successfully, for that matter) in all sectors, by targeting newcomers to the space, they still draw only a small fraction of the entire blockchain network.

Ethereum 2.0: Killers are at a halt

Ethereum is currently working towards amending the network’s primary drawback: fees. Ethereum implemented the London Hard-Fork. This included the EIP-1559 protocol update, reduced miner fees, as well as bringing Ethereum closer towards the PoS status.

Michael Rosenblat noted that Ethereum 2.0 would address “lower fees and higher throughput,” invalidating the value propositions of most Ethereum killers. Thus, Ethereum will boost its value proposition by amending most of the convulsions surrounding the network’s narrative, including fees, high energy dependency, and scalability. The network has 8.2 million ETH invested on Eth2, and can move to a more sustainable, agreed-upon status.

Why you should care

Ethereum Killers are a valuable addition to the market because they enhance the competition in the sector, which ultimately leads to faster growth. Additionally, developers will be able to focus more attention to other areas of the network when they are in contention.

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