Investors who bet big money on ether, which is the token of the ethereum network, had a bad month in Sept.
Ether’s monthly numbers fell to its second-lowest level since the month of June, after a 16% fall. The top crypto, Bitcoin, lost around 7% during Sept.
In light of the rally in cryptocurrency over the previous 12 months, a pullback was anticipated. However, it’s hard to connect short-term price moves to any one event. In the previous year, Ethereum’s value has gone up by around 830%, which is the second-highest by overall value.
The Sept. dip is now getting bought by investors. Ether and bitcoin both went up by more than 9% on Friday, the first day of Oct.
However, the roller-coaster of Sept. reflects a worrisome time for Ethereum and is causing issues for developers and investors.
High fees and a slow network continue to be an issue. Despite the London upgrade from Aug., it has had small impact on the volatility of reported fees.
In the meantime, rival cryptos called “ethereum killers” by some people are exploiting ethereum’s problems.
Nonetheless, Ethereum, which is the foundational block for all sorts of cryptocurrency projects, including non-fungible tokens (NFTs), decentralized finance (DeFi), and smart tokens faces some major challenges to defeat the competition.
As a result, companies are now researching platforms such as Cardano, which is used by developers to create dApps, and Solana, which had almost 4,800% growth since Sept. 2020. Because of its cheaper price and faster usage than what ethereum can do, Solana is getting traction in the NFT and DeFi sectors.
A Solana website says the company does 50,000 transactions a second at a price of $ 0.00025 for each transaction. The transaction speed of Ethereum can only do around 13 transactions each second, and the fees are much higher than on Solana.
There is institutional money flowing in too. Polychain Capital spearheaded a $ 314 million sale for Solana tokens recently.
As investors move away from ethereum, alternative cryptos like Tezos, Solana, and Cardano are now increasing.
But these blockchains are not immune to bugs. Solana was hit by a denial-of-service attack just last month, which was done by hackers using bots to flood transactions.
Author: Blake Ambrose