So far, Ethereum is leading the smart contract blockchain space. It tops the CryptoSlate’s leaderboard of smart contract cryptocurrencies. A noted analyst shared how Ethereum’s Dominance can be “killed”.
Data says that the ETH’s market capitalization is way, way larger than its tightest competition, the Cardano’s ADA. Moreover, it is more dominant from other competitors like Zilliqa’s ZIL and Digibyte’s DGB.
Looking at such a huge lead, some traders wonder if it will ever be overcome.
A prominent crypto trader is saying it is not impossible. However, it can only be done through somewhat an un-thought of way which is the non-US dollar stable coins.
Analyst Notes How Ethereum’s Dominance can be “killed”
As of the moment, one of Ethereum’s greatest propositions is the fact that it is a platform for the transactions of U.S. dollar stablecoins. It deals with Tether’s USDT, True USD (TUSD), USD Coin (USDC), and many other stablecoins.
Based on the estimated data, there is approximately $8-9 billion worth of stablecoins at the moment, based on the Ethereum blockchain.
This is of significant matter because there are days when the value of ETH-based stablecoins transactions is higher than the value of ETH transactions. Needless to say, stablecoins are truly essential economic drivers of Ethereum.
Furthermore, stablecoins are what decentralized finance (DeFi) successful.
However, the former Messari executive Qiao Wang, noted that what Ethereum is missing, is non-USD stablecoins.
He explained that they are fated to fail unless “ETH-killers” start to stride away from effectively copying ETH’s ethos and vision.
The trader further noted stablecoins are hard to put through because of the negative interest rates and other macroeconomic factors. Those stablecoins in the topic are in relation to other currencies like the Pound Sterling, the Japanese Yen, or the Euro.
However, a project will be adopted in DeFi remittance and international payment once it sets off the ground, Wang noted.
Cardano is the First to bat
Cardano has not launched non-USD stablecoins as of the moment. Nonetheless, it is Ethereum’s tightest competition when it comes to technology and market capitalization.
Cardano launched the “Shelley” upgrade. Accordingly, Charles Hoskinson, Cardano’s founder thinks that it can start to encroach on Ethereum’s market capitalization.
However, putting what Qiao Wang said into consideration, it may suffer eventually. Unless Cardano starts to really differentiate itself from other smart contract platforms, that is.