It is clear that Ethereum (ETH) is currently facing a lot of competition in the cryptocurrency market. It is not as easy as before to be one of the best virtual currencies. There are several projects that are growing and threatening the dominance of Ethereum.
Although Ethereum continues to dominate the initial supply of coins (ICO), the situation does not seem so positive for the future. The network has several scalability and speed problems that need to be solved and the developers seem to be grappling with this problem.
Now ICO teams can start their projects on many different platforms such as EOS, NEO, VeChain, Stellar, Tron and many others. This is positive in terms of development because each of these projects wants to offer the best solutions for users.
One of the latest projects released on the market is Kin. This virtual currency and blockchain network was launched by the Kik company that manages Kik Messenger with 300 million users worldwide. Although launched on the Ethereum platform, Kik announced that it will close the atomic exchange of kin with Ethereum.
Stellar is also one of the largest blockchain networks in the cryptocurrency market. It has an easy to use token and a system that is free of permissions and accessible to everyone. At the same time, Stellar has integrated features that support multilingual signing authorizations and more.
In addition, the Sellar token can be exchanged without having to rely on a third-party exchange. Moreover, compared to Ethereum, Stellar offers faster and cheaper transactions.
At the beginning of the year, ICO Mobius distinguished itself because it was one of the most extensive networks in the market and had been built on the Stellar network. However, Ethereum offers an excellent infrastructure for developers to create a token, make an initial coin offering or create a new blockchain network.
The Ethereum domain is eroded by new competitors entering the market. This does not mean that Ethereum will disappear, but developers will have to work harder if they want to help Ethereum stay competitive.
With the scale problems that Ethereum is facing and the problems related to the transition between the PoW and PoS consensus, other networks are starting to grow and occupy a place that was previously wholly owned by Ethereum.
It is also worth mentioning that Ethereum lost its second place in the crypto market after XRP was able to overcome it in terms of market capitalization. This also shows that the sentiment around Ethereum is not as positive as at the end of last year.
At the time of writing this article, Ethereum has a market capitalization of $ 12.31 billion and each ETH can be purchased for $ 119 dollars. Stellar Lumens (XLM), on the other hand, is the fifth largest cryptocurrency with a market capitalization of $ 3.07 billion and a price per coin of $ 0.16 dollars.
Although Stellar is growing, it still has a long way to reach the top three and overtake Ethereum.