What Is the Next Ethereum? Top 6 Competitors in 2024

There are several blockchain networks competing for a piece of Ethereum’s smart contract and DeFi market share. Projects like BNB Smart Chain, Cardano, Solana, Tron, Polkadot, and Avalanche are some of the most prominent “Ethereum killers”.Ethereum (ETH) is a blockchain protocol that supports decentralized applications and smart contracts. It is the second-largest cryptocurrency by market capitalization and the most widely used platform for decentralized finance (DeFi) and non-fungible tokens (NFTs). However, it also faces some challenges, such as high gas fees, network congestion, scalability issues, and environmental concerns. Therefore, many other blockchain platforms have emerged as potential competitors or alternatives to Ethereum, offering different features and advantages.In this article, we are going to examine the most prominent Ethereum competitors and look into the pros and cons of 6 crypto projects that are vying to become the next Ethereum.Data collected on April 26, 2024.
*Polkadot’s TVL is calculated as the total sum of TVL across Polkadot parachains (Moonbeam, Acala, etc.)When talking about the “next Ethereum”, we are referring to cryptocurrency projects that are leveraging blockchain and smart contract technology for developing DeFi and NFT solutions, which is currently the arena Ethereum is dominating thanks to its first mover advantage. In the following sections, we are going to examine six projects with robust feature sets and active communities that could challenge Ethereum’s dominating market share in the future.BNB Smart Chain (BSC) is a blockchain platform launched by the popular cryptocurrency exchange Binance. Powered by its native token BNB, BSC aims to provide an alternative to the Ethereum network by offering faster and cheaper transactions. It achieves this by using a different consensus mechanism called Proof of Staked Authority (PoSA). BSC’s compatibility with the Ethereum Virtual Machine (EVM) allows developers to easily migrate their dApps from Ethereum to BSC, leveraging its high throughput and low fees.Why is BNB Smart Chain considered the next Ethereum?Thanks to a large number of users, familiar features that are heavily inspired by the Ethereum blockchain, and backing by the world’s largest crypto exchange, BNB Smart Chain is considered the top Ethereum killer.Solana (SOL) is a high-performance blockchain platform designed for decentralized applications and crypto-currencies. It leverages a unique combination of proof-of-stake (PoS) and proof-of-history (PoH) mechanisms to achieve fast transaction speeds and low fees. Solana’s scalability and throughput make it an attractive option for developers looking to build complex applications that require high-performance capabilities.Why is Solana considered the next Ethereum?Solana is one of the most energy-efficient and cheapest crypto networks for transferring value. In addition, Solana features a healthy ecosystem of dApps and an active community, despite SOL’s rapid price decrease last year due to its connection with the now defunct FTX exchange.Cardano (ADA) is a blockchain platform that aims to provide a secure and sustainable infrastructure for the development of decentralized applications and smart contracts. Built using a peer-reviewed academic approach, Cardano boasts a high level of security and scalability. It utilizes a unique consensus algorithm called Ouroboros, which ensures that the network remains decentralized while maintaining fast transaction processing.Why is Cardano considered the next Ethereum?Cardano is not only one of the most popular crypto projects but also one of the most actively developed blockchains in the space, making it not only one of the top Ethereum killers but also a potentially good investment overall.Tron (TRX) is a blockchain platform that aims to create a decentralized digital entertainment ecosystem. It focuses on providing a decentralized infrastructure for content creators and consumers in the entertainment industry. Tron offers high throughput and low transaction fees, making it suitable for applications such as gaming, social media, and digital content distribution.Why is Tron considered the next Ethereum?Over the years, Tron has emerged as a credible alternative to Ethereum due to its transaction speed and overlapping features. In recent years, Tron has also looked to expand its offering, integrating decentralized file-sharing capabilities with the acquisition of BitTorrent (BTT) and launching a decentralized stablecoin, USDD.Avalanche (AVAX) is a highly scalable blockchain platform that prioritizes speed, security, and decentralization. It utilizes a novel consensus protocol called Avalanche, which enables high throughput and fast finality. Avalanche’s unique approach to consensus makes it highly resilient to attacks and allows for quick transaction confirmations, making it an attractive choice for developers seeking a scalable and secure blockchain platform.Why is Avalanche considered the next Ethereum?Avalanche’s focus is on overcoming some of Ethereum’s scalability and speed limitations. While the blockchain itself is capable of processing about 150 times the number of transactions as Ethereum, Avalanche has struggled to build a dApp and NFT ecosystem that could challenge Ethereum, at least so far.Polkadot (DOT) is a multi-chain platform that enables the transfer of any type of data or asset across different blockchains. It aims to create a decentralized internet where different blockchains can communicate and share information securely. Polkadot’s unique architecture allows for interoperability between different chains, facilitating seamless data transfer and enabling developers to leverage the strengths of multiple blockchains simultaneously.Why is Polkadot considered the next Ethereum?Polkadot was conceived by Gavin Wood, a computer scientist and co-founder of Ethereum. Wood launched Polkadot with the intention of enhancing scalability with “parachains”, which enable parallel processing of transactions, allowing Polkadot to handle a larger volume of transactions compared to Ethereum.In addition to the blockchain networks described above, like BNB Smart Chain, Cardano, and Polkadot, there are numerous other platforms considered members of the group of Layer 1 networks called Ethereum killers. Some examples of blockchain platforms that have an overlapping feature set, such as Ethereum, include several smaller market cap projects, including Cosmos, Ethereum Classic, Near Protocol, Tezos, Algorand, and Fantom.It is also worth mentioning that several Layer 2 solutions that aim to alleviate scalability issues on the Ethereum network, like Arbitrum, Polygon, and Optimism, are also considered by some as Ethereum competitors. However, that categorization would be somewhat nonsensical, as these solutions aim to enhance the operations of the Ethereum blockchain, not replace it.Bitcoin and Ethereum are both cryptocurrencies that use blockchain technology, but they have different purposes and features. Bitcoin is designed as a digital currency and a store of value, while Ethereum is a platform for smart contracts and decentralized applications. Therefore, they are not direct competitors but rather complementary projects that aim to solve different problems using blockchain technology.However, from the perspective of traders and investors, Bitcoin and Ethereum may be seen as competitors as they vie for market share and adoption. Bitcoin is the first and largest cryptocurrency by market capitalization, and it has a high level of security, decentralization, and network effects. Ethereum is the second-largest cryptocurrency by market cap, and it has a high level of innovation, functionality, and scalability. Both cryptocurrencies have their advantages and disadvantages, and their performance may vary depending on market conditions and user demand.Ethereum was the first major blockchain platform to build the necessary infrastructure and building blocks to support the creation of decentralized applications, decentralized financial systems, and new tokens, thanks to the ERC-20 token standard. Since its launch in 2015, numerous other networks have tried to overcome Ethereum’s first mover advantage, but to no avail. BSC comes the closest, especially in terms of active users. However, the ecosystem of products and services is considerably smaller on BSC than on Ethereum. Other networks, like Cardano, Solana, and Polkadot, are even further removed, despite their ability to process considerably more transactions and at a lower price than Ethereum For more information about whether it is a good idea to buy Ethereum, and what are the pros and cons of investing in Ethereum, you can check the video below.