Ethereum has solidified its position as the second most popular currency (after Bitcoin) in the past year, and its market capitalization has reached ever greater heights.
During this time, the Ethereum network experienced a rapid rise in the value of intra-chain trading, a massive influx of new users and the birth of an entire ecosystem of DeFi applications, which now includes Uniswap, Compound, SushiSwap, Curve.
However, some of Ethereum’s long-standing problems are starting to surface again – we’re talking about high fees and congestion. Indeed, the average Ethereum transaction fee has increased tenfold since the beginning of the year and tripled in the last month alone. In the meantime, overloading some DApps makes it incredibly difficult to keep going.
Interacting with popular DApps on Ethereum can now be extremely expensive, as an average swap on Uniswap now costs anywhere from $ 50 to $ 100 in network fees alone. While this is a serious inconvenience for end users, it is also a huge blow to developers who are faced with the challenge of making their product attractive to users at such high prices.
Although Ethereum is still the most actively developed blockchain, it is gradually losing its position as the number 1 smart contract platform, as its most competent developers are sought by firms operating on other blockchains. As a result, Ethereum’s wide range of competitors have seen a dramatic increase in development efforts in recent months, and many now have a DeFi ecosystem starting to compete with Ethereum.
In particular, developers are starting to pay more attention to platforms such as QAN as they immediately address a number of Ethereum’s shortcomings, including high fees, a complex development process, and a lack of quantum resilience. As a quantum resilient blockchain designed to support multiple programming languages, QAN is emerging as a strong Ethereum alternative for DeFi applications.
Likewise, other modern blockchains, including Binance Smart Chain, Solana, Fantom, and Avalanche, are seeing a dramatic increase in developer activity – mainly due to their improved bandwidth over Ethereum, in contrast to their superior development environments. They are now similar to Ethereum about a year ago in terms of ecosystem development, but are rapidly gaining momentum.
As developers are now looking for a platform that provides a seamless experience for their users, it becomes increasingly likely that one of them could knock Ethereum out of its leading position. However, with Ethereum’s long-awaited Proof-of-Stake (POS) update approaching every day, it remains to be seen if it has what it takes to break away again.