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3 Ethereum Competitors To Invest In 2022

Ethereum
Ethereum

The world of Cryptocurrency is growing each new day, with more people investing in the industry. In particular, Ethereum’s (ETH) popularity is growing unprecedentedly. It is ranked second after Bitcoin (BTC) due to its legitimacy and trustworthy nature. In addition, Ethereum boasts of being an open-source blockchain company that is decentralized and utilizes smart contract functionality. This means that anyone can add immutable decentralized applications or dApps onto it. Users can therefore interact without needing a third party such as banks, brokerages, and exchange institutions.

Notwithstanding these successes by Ethereum, it is facing immense competition from new entrants, and its position is likely to be challenged. Therefore, if you are looking for the next three bigwig blockchain companies to invest in, you should consider Cardano (ADA), Solana (SOL), and Polygon (MATIC). Also, consider trading with reputable trading companies such as OKX for guaranteed returns. So, let us get started on why you should invest in these three companies.

Cardano (ADA)

Cardano, one of Ethereum’s biggest competitors, was founded in 2017 by Charles Hoskinson, a co-founder of Ethereum. Notably, it is ranked as the eighth-most valuable Crypto with a market cap of $30.20 Billion as of 22nd March 2022. Similar to Ethereum, Cardano allows its users smart contract functionality capabilities. Additionally, it allows the use of decentralized applications such as decentralized finance (DeFi) and Non-Fungible Tokens (NFT) in its system. These features by Cardano increase its popularity since DeFi protocols and NFT highly utilize Cryptocurrency during trading.

Cardano has a proof-of-stake (POS) agreement mechanism that Ethereum is yet to establish. As a result, Cardano can process 250 transactions per second, while Ethereum can only process 14 transactions per second. This gives Cardano a huge competitive advantage due to its speed and scalability, making it a key selling point to investors.

Another unique feature of Cardano is the addition of Hydra, an upgrade that could tremendously increase its Transactions per Second to 1 million. Cardano is indeed a perfect entry point for long-term investors.

Solana (SOL)

Solana is another big competitor to look out for in 2022. It was founded by Anatoly Yakovenko and Greg Fitzgerald and released for the first time in public in 2020. It is ranked as the 9th most valuable Crypto with a market cap of $29.12 Billion as of 22nd March 2022. Like Cardano, it prides itself on having a Proof of Stake system that increases its transactions per second. Besides the POS system, Solana has proof of history mechanism that adds a timestamp to each transaction speeding up the transaction processing time. Currently, the system can process 50 000 transactions per second. As a result of its supersonic transaction speed, Solana is becoming a go-to cryptocurrency for many investors.

With the recent launch of Solana Pay, sellers can accept crypto payments at zero costs while simultaneously creating a direct rapport with the customer. This is an interesting feature for any serious investor or merchant. Solana has a promising future.

Polygon (MATIC)

Polygon is a two-layer network used to support the scaling of Ethereum. It allows the addition of new users while at the same time providing lower transactional costs compared to Ethereum. Most people that use Ethereum are tired of paying $500 to complete a transaction. It has a market cap value of $10.4 Billion as of 22nd March 2022.

Notably, Polygon is home to some of the most popular Decentralized Finance mechanisms and also hosts several NFT projects on its platform. For instance, Polygon has collaborated with several NFT companies such as Opensea, SushiSwap, and Aavea. Additionally, DraftKings Inc, a sports betting company, has collaborated with Polygon to enable customers to purchase NFT through the platform.

Polygon is designed to complement Ethereum rather than compete directly with it. However, experts argue that it has room for growth, and as it gets bigger, it could be independent of Ethereum.

Final thoughts

Although new entrants in the world of Crypto look more promising, Experts believe that Ethereum is here to stay. Ethereum is the anchor of decentralized blockchain technology.

However, look out for other cryptocurrencies since they have better features than Ethereum. Cryptocurrency is the new wave that is not ending soon. So go ahead and do your research before investing.

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