The Ethereum network, once considered the successor of Bitcoin, is losing ground to new networks. Founded in 2015, Ethereum has provided a platform for developer to create decentralized apps (DApps), launch initial coin offerings (ICOs), and write smart contracts. But now, developers are switching to other projects.
Newwer platforms like EOS, Tron, and Stellar are being favored. According to a Bloomberg report released on March 28, in the first month of this year only 28 percent of DApps users were on the Ethereum network. Contrasting this number, 48 percent were on EOS network, and 24 percent on Tron. According to Kyle Samani, co-founde of Multicoin Capital Management, this phenomenon occurs because now there are more options besides Ethereum.
Travis Kling, founder of Ikigai crypto hedge fund, says: “Owning Ethereum today is a call option on what you think the network is going to be in the future. To the extent that Ethereum competitor projects get traction with developers, with users, with DApps built on top of the platform, that will be viewed by the market as being detrimental to the overall value of Ethereum, and that can have a negative price impact on Ether.”
Others have the opinions that Ethereum’s block speed is already lagging behind other networks. More recent networks can allegedly confirm transactions in less than a second, whereas Ethereum takes 13 seconds. Nevertheless, the majority of token offerings still take place on the Ethereum network according to Bloomberg.