Ethereum has long been synonymous with innovation in the realm of smart contracts and dApps, boasting not just a massive following but also support from major players including notable conglomerates such as JP Morgan.
New insights show Ethereum, masterminded by a largely Canadian cohort, may now be trailing behind its emerging competitors — EOS and Tron among others.
dApps War: Ethereum Starting to Slip
According to a recent report from Dapp.com . According to a crypto data analysis firm, Ethereum’s dApp ecosystem is showing signs of slowdown when put side by side with its competitors. It currently boasts over 1,633 dApps, compared to 435 on EOS and 412 on Tron, but the rivals are seeing higher transactional volume.
In greater detail, Ethereum's dApps handled about 6.04 million transactions in the second quarter, a significant number but not quite as impressive given the network processes over a million transactions daily. In stark contrast, EOS noted about 189.79 million transactions linked to dApps, and Tron about 90 million, figures that dwarf Ethereum's.
Moreover, the value moving through EOS and Tron smart contracts surpassed Ethereum's, with each funneling more than $1 billion of their native cryptos.
The report suggests that Ethereum's underperformance compared to its stature in the crypto hierarchy may partly be influenced by market factors, with researchers from Dapp.com noting:
\"The correlation between ETH's price and user engagement is strong, leading to more dApp conversion as the price steadily climbed since mid-May 2019.\"
It's been evident to many that Ethereum hasn't matched up to the roaring successes of Bitcoin and other high-cap cryptocurrencies. Thus, it's plausible that investors are seeking alternatives amidst this downturn.
There’s Hope
While some might view this as the twilight period for Ethereum, the original smart contract network still has significant potential. The foundational code for Serenity (Ethereum 2.0) has recently been set, signaling a shift towards proof of stake.
As reported by this outlet previously , signaling the shift from proof of work to proof of stake is underway, a goal long-awaited by Ethereum’s developers, with a rollout targeted for early 2020.
If you weren’t in the loop, Serenity has been heralded by Ethereum’s prolific creator Vitalik Buterin as the blueprints to radical efficiency gains. By implementing concepts like PoS and sharding, it aims to refine the ecosystem vastly, enhancing everything from the protocol's scalability to Virtual Machine improvements.
Moreover, the keen interest from corporations in Ethereum, with firms like Ernst & Young, JP Morgan, and Samsung actively engaging with the blockchain, highlights its ongoing relevance. Such corporate partnerships are less common with EOS and Tron.
