Reasons Why Ethereum Could Lose Market Share Against Competitors

For several years now, Ethereum has continuously been leading the smart contract blockchain. Ethereum, which is the blockchain’s native cryptocurrency, possesses native market capitalization in excess of 25 billion dollars. Recently, a fund manager shared about why Ethereum could lose market share.

ETH’s $25 billion is an order of magnitude higher than the market capitalization of Cardano’s ADA which is only $2.5 billion. Needless to say, Cardano is Ethereum’s closest competitor. Moreover, $25 billion is two orders of magnitude higher than the value of Zilliqa (ZIL), ETH’s other competitor.

In spite of the Ethereum asset’s dominance, analysts still foresee Ethereum losing market share to competitors in the future.

Why Ethereum could lose market share, explains analyst

Recently, a Joseph Torado, a managing partner at BlockTower Capital, shared some reasons why  “many little-known Ethereum rivals will significantly outperform ETH”  in this cycle.

He posted a multi-part thread regarding the matter to further expand his view.

EThereum Could Lose Market Share 1

Joseph Todaro further stated:

Furthermore, he commented on Ethereum doubters. He said that “Ethereum has never been so certain as it is today”. However, he added that “the road to scalability is still long and weary.”

Because of the high transaction fees and a limited number of users and transactions, it is the perfect time for a “dark horse” to appear, he further stated. He did not give any competitors’ names. However, there is a grievous probability that protocol war portraying projects will aim to come on top of the next bull. Who knows, it may have just begun, seeing ADA firmly outperforming Ethereum.

Is Ethereum a Good Investment?

Todaro released his thoughts with hints that Ethereum will still do well after all. On the other hand, some traders have questioned that idea entirely.

Steven McClurg and Leah Wald, Exponential Investments’ CIO, and Portfolio Management’s VP are saying that ETH assets are not a feasible investment.

Just like Torado, they emphasized Ethereum’s high gas fees. This is particularly to the point this time, as Ethereum blocks are 95% full and “gas” rates are really high.

Ethereum will go through tailwinds in the future, as it faces competitors and its own problems. Nevertheless, that Ethereum may have technical improvements and other shifts that may increase its price performance and investment feasibility.