ETC Group, a fund issuer, has
London-based investment firm Bitwise has examined the potential for Solana and Aptos to become the next Ethereum in its latest newsletter. Its analysts revealed that while both chains have grown and gained momentum, Ethereum is still the overall leader according to the ETC Groupâs Network Dominance Index.
ETC Group Analysts Confirm Ethereum Market Dominance Even As More Chains Compete For Its Leadership
Analysts are looking into the possibility of other chains stepping up to fight Ethereumâs dominance in the cryptocurrency market. ETC Group, a London-based finance firm acquired by Bitwise in August, compared Solana and Aptos against Ethereum, taking into account different variables to see which has a chance of dethroning the leader.
While Solana presents itself as a strong contender, boasting strong Q3 2024 flows and story price performance, ETC Group estimates that its âEthereum killerâ status puts it in strong opposition from Aptos and other chains seeking growth in the smart contract-enabled crypto asset class.
The newsletter explained that Aptos showed positive price performance in Q3 and significant network growth driven by the adoption of the Gamefi project. However, the decision to adopt Move, a relatively unknown language, as its development tool could hurt its growth due to developersâ fears of switching to a new chain without clear incentives.
However, the ETC Groupâs overall Network Dominance Index puts Ethereum above its competitors. The index, which is calculated by taking into account several key metrics such as network usage, economic density, network activity, and adoption, scores 45% for Ethereum. This figure underscores âthe continued expansion of the ecosystem and sustained user engagement, despite facing increasing competition.â
The organization stated:
Ethereumâs ability to maintain its market share underscores the power of its established network effects and diverse application ecosystem.
In contrast, Solana is up 35% in a downtrend attributed to increasing competitive pressure from other networks. Aptos is up 20% in a rising trend that suggests it could challenge Solanaâs position as Ethereumâs top competitor.
âEthereum offers solid dominance and stability, Solana shows impressive growth and a proven track record, and Aptos shows potential for future innovation and ecosystem expansion,â the organization concluded.
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