Looking for the Next Ethereum? 2 Top Cryptocurrencies to Buy Now | The Motley Fool

In 2013, Ethereum ( ETH -0.43 % ) became the first base programmable blockchain. Whereas preceding blockchains served entirely as digital ledgers for transaction data, Ethereum could besides support self-executing computer programs known as smart contracts. That engineering has since evolved into a vibrant ecosystem of decentralized applications ( dApps ) and decentralized finance ( DeFi ) products .
today, Ethereum is a boom ecosystem of software and services, but that popularity has exposed its miss of scalability. As more people have flooded the network with transactions, the resulting congestion has caused fees to spike. Of naturally, the developer community has a solution in the works, but it wo n’t launch until 2023. In the meanwhile, rivals like Fantom ( FTM -0.46 % ) and Solana ( SOL -2.07 % ) have a luck to gain grind .
here ‘s what you should know .
Investor studying price charts at his desk.

1. Fantom

The Fantom blockchain went live in December 2019. Its core invention is the Lachesis protocol, a proof of venture ( PoS ) consensus mechanism that accelerates throughput to thousands of transactions per second. Fantom can besides finalize transactions in one or two seconds, and those transactions cost a fraction of a cent. By comparison, Ethereum handles about 14 transactions per moment, and the average tip is more than $ 13.

Better so far, Fantom is actually compatible with Solidity, the programming terminology used to build bright contracts on Ethereum. That means developers can easily deploy Ethereum-based software and services on the Fantom blockchain, boosting performance and lower costs. For exemplify, Ethereum-based yield collector Yearn.finance went be on Fantom stopping point October, joining its quickly growing network of DeFi services. In fact, Fantom presently ranks as the sixth-most-popular DeFi ecosystem, with closely $ 6 billion invested on the platform .
In the coming years, Fantom ‘s value proposition — transactions that are fast and cheap, and compatibility with Solidity — make it an excellent candidate to disrupt Ethereum. What does that mean for investors ? Fantom presently has a market cap of precisely $ 3 billion. That ‘s less than 1 % of Ethereum ‘s $ 365 billion market hood. But if the borrowing of Fantom-powered software and services continues to rise, demand for the cryptocurrency ( the FTM coin ) will rise ampere well, pushing its price eminent. And if its market capital were to hit $ 365 billion, investors would see 120-fold returns based on its current price .

2. Solana

Solana brands itself as the world ‘s most-performant blockchain. Its unique PoS consensus mechanism accelerates throughput by time-stamping incoming transactions, creating a verifiable order of events that can promptly be confirmed by validators. Solana can process 50,000 transactions per irregular, and it can finalize those transactions in about 13 seconds. Thanks to that scalability, transactions cost a fraction of a penny .
Solana went exist in February 2020, curtly after Fantom, but it has generated even more buzz among developers and DeFi investors. Over 1,500 projects are live on the blockchain, including the popular non-fungible token marketplace Magic Eden and disruptive requital protocol Solana Pay, which eliminates bank and wag fees by allowing consumers to transact directly with merchants. jointly, Solana ranks as the fifth-most-popular DeFi ecosystem, with $ 6.5 billion invested on the platform .
Unlike Fantom, Solana is not compatible with Solidity, but its ecosystem of decentralized software and services has still grown more quickly. Assuming the borrowing of dApps and DeFi products on the blockchain continues, demand for the native cryptocurrency ( the SOL mint ) should increase, driving its price high. And if Solana — presently valued at $ 34 billion — were to achieve a market cap of $ 365 billion ( i.e., Ethereum ‘s stream market capital ), investors would see 10-fold returns.

The fine print

I think Fantom and Solana could be rewarding long-run investments, whether or not they surpass Ethereum in terms of price and popularity. however, the blockchain industry is incredibly competitive, and the crypto market is known for its volatility. For that cause, I think investors should follow these elementary rules : Build a diversify portfolio — a combination of stocks and cryptocurrency is a bang-up means to go. And never invest money you might need in the future three years .

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