The Top 4 Cryptocurrency Network Effect Tokens
ETH-Killer Contenders List
As Ethereum has taken first place, other blockchains remain in pursuit of the leader in the clubhouse.
The prize in this winner takes all arms race is the network effect.
While almost certainly no one will catch Ethereum in this market cycle, great hype surrounds blockchains, which could have a chance in the next cycle.
Whether any of these blockchains actually prove themselves as true “ETH-Killers,” will be a hot crypto topic in the years ahead.
Clearly, the average crypto investor should consider at least one ETH-Killer, as they continue to have a role to play in this market cycle.
These are my picks for the top network effect contenders.
Cardano — (ADA) #6 Market Cap at $4.3 Billion
(4-hr chart)
Cardano (ADA), with its cult-like following, continues its meteoric rise.
While ADA is likely to continue outperforming Ethereum for market growth in this cycle, it remains like the rest, a “potential” blockchain of the future.
Charles Hoskinson, an original Ethereum founder, has ADA on the fast-track to potential crypto dominance.
I’m leaning on the word “potential,” because we don’t know who will emerge as the winner(s).
After their Shelly launch in 2020, and now Goguen Mainnet and smart contracts, ADA is well-positioned to continue its current market cycle run.
Why Cardano: ADA has a strong history of Alt-season performance, holds a rabid support base, and is aggressively spending and moving resources into the DeFi market.
Polkadot — (DOT) #7 Market Cap at $34.6 Billion
(4-hr chart)
As a “parachain”, Polkadot (DOT), facilitates diverse multi-blockchain communication, in a trust-free, sharing unique features, while pooling security.
This means, as a scalable and flexible multi-chain network, DOT is making a huge bet the blockchain of the future will be the one driving and supporting the efficiency of all blockchains.
Instead of a competitive model, the DOT infrastructure is one of cooperation, with the belief blockchains, need to provide a variety of services.
And this value proposition becomes infinitely obvious when looking at the internet and its wide variety of services.
Polkastarter, (POLS), DEX launches crypto projects, raising their capital in DOTs decentralized, permissionless and interoperable ecosystem.
Why Polkadot: Besides its unique parachain blockchain model, DOT remains one of the most easily staked high yield blue chips, with a hot crypto project launchpad.
Binance — (BNB) #3 Market Cap at $71.8 Billion
(4-hr chart)
Originally built on the Ethereum blockchain as an ERC-20 token in 2017, BNB was moved to Binance Chain in 2019, becoming the native Binance Chain coin.
As an exchange-based token of the Binance crypto exchange, the BNB coin has seen unrelenting growth.
Token burning continues to appreciate the BNB price and pushed it up as one of the top-10 cryptocurrencies by market capitalization.
BNB trades in over 300 trading pairs across 120 exchanges.
Binance Smart Chain takes BNB to new heights, strengthened further by the popular decentralized exchange (DEX), Pancake Swap.
Why Binance: BNB will continue impressive growth fueled by token burning, along with the widespread popularity of the Binance Smart Chain.
Cosmos — (ATOM) #31 Market Cap at $4.8 Billion
(4-hr chart)
While not a true parachain like DOT, Cosmos (ATOM) has an attractive value proposition as a network of independent blockchains.
Whereas DOT operates based on cooperation, ATOM is structured in terms of independent zones, which allow for more customization and corruption containment.
Delivering various advantages over the parachain model, Cosmos aims to be the “internet of blockchains.”
ATOM is a widely staked token, which earns generous staking rewards.
The biggest advantage of Cosmos lies in its status as a working product with proven use cases.
Why Cosmos: ATOM provides generous staking options, and like Ethereum, is live with a history of use.
Final Conclusions
Many blockchains remain in hot pursuit, challenging Ethereum for the network.
As this debate is not likely to be settled soon, it remains an interesting crypto topic.
And just because the smart money is on ETH to keep its position, nothing is certain.
Modern portfolio theory promotes diversification, leading us to consider some exposure in at least one ETH-Killer.
I want to know what YOU think?
What is your favorite ETH-Killer?
And do you believe it dethrones Big Daddy ETH?
Would you drop us your comments below?
Your Friend in Prosperity,
Ross Jones
Disclosure/Disclaimer: This article is not an offer to provide financial, legal, or tax advice. This article represents an opinion, as you should not rely upon this subjective opinion, instead of your own independent research. All investments pose the risk of loss to the investor, with any investment posing up to 100% loss of investment. Always consult your financial, legal, and tax advisor prior to engaging in any investment. Always do your own research and invest at your own risk with complete awareness and acceptance of all risks. I am choosing to disclose that I have a financial interest in all tokens discussed in my articles.
