As Ethereum (ETH) gas fees continue to escalate, there has been a migration to faster networks, but none of them have been able to “kill ETH” yet, according to Weiss Crypto.
Market analysis and risk rating firm Weiss Crypto has reported that Ethereum has made a solid recovery from the fourth market correction in the current cycle.
At the time of writing, ETH was trading up 4.3% on the day, topping $2,400 again and just 5.7% off its all-time high (ATH). Bitcoin (BTC), conversely, was heading in the opposite direction, dropping 3.6% on the day and trading at $53,750, 17% down from its ATH. Weiss commented:
“This show of strength from the number two cryptocurrency is very assuring for this current altcoin season and is an extremely bullish sign of things to come for alternative crypto investments. We’re doubling down on our call for altcoin season now.”
No ETH killers
The ratings firm also asserts that there will be no “Ethereum killers” for some time, despite the emergence of a large number of rival blockchains that are faster and cheaper to use. In a tweet on April 21, Weiss stated that it was “highly skeptical” about other Layer 1 networks catching up to Ethereum:
“Some say that other L1s are “catching up to ETH,” but we’re highly skeptical. It’s the same story from 2017 where wannabe $ETH killers sacrificed all semblance of decentralization to be cheaper and faster.”
The firm added that many of these rivals do not hold a candle to Ethereum, and the only hope for some of these alternatives is to become a sidechain to ETH.
Weiss commented that Ethereum rivaling blockchains launched or hyped during the previous cycle, such as EOS and NEO, have not lived up to their claims of being able to “kill ETH.”
The largest rival to Ethereum at the moment is Binance Smart Chain (BSC) and even that began to show signs of strain under the increased demand this week. The network’s top DEX PancakeSwap commented that BSC was “overloaded,” following complaints from users regarding failed transactions and errors.
According to researchers at SIMETRI, BSC could go the same way as EOS as building larger “pipes” for faster transactions doesn’t necessarily solve the scalability issues. BSC has already been questioned over its validator centralization and without storage, computing, and availability upgrades it may eventually go the way of all the Ethereum killers before it.
Ethereum gets an A-
Weiss currently ranks ETH overall as A-, which is what it also gives to Bitcoin. Its closes competitor in terms of ranking by the company is Cardano (ADA) which gets a B- for technology and adoption. Polkadot (DOT), which could be considered as a serious contender to rival Ethereum, comes in with a C+, according to Weiss.