Co-founder of Bitmex, Arthur Hayes, in an interview with the popular YouTube Channel, stated that from a long-term perspective, most of the leading Ethereum competitors don’t stand a chance against the smart contract platform.
Hayes acknowledged that some of the leading layer-1 Ethereum rivals might perform relatively well in the next bull run. However, he also adds that most of them lack the sheer potential to overtake ETH over the long term.
This is true, according to Hayes, if one considers the relative differences in their market caps compared to that of Ethereum.
Ethereum Competitors Do Not Stand A Chance?
The other cryptocurrencies and networks may be good investment choices at face value, Hayes opined. He also says that they may “go up fast,” but none still comes close to competing with ETH.
Hayes goes further to state that ranking cryptocurrencies and networks shouldn’t be based only on transactions per second or any of the other mainstream metrics. The metric, he says, should be developer talent.
Citing ETH as an example, Hayes states that the smart contract platform probably has thousands of developers, while the next blockchain after Ethereum likely only has a few hundred. “That’s all that matters,” Hayes says.
As with the issue of hype around the number of transactions per second, Hayes mentions Solana. Recall that Solana has a touted transaction per second value of 50,000. According to the crypto veteran, hype around “transaction per second” values can only work for so long.
He also argues that most of the other competitors only copy and paste things that have already been created on the Ethereum network. Citing Solana again as an example, Hayes states that the cryptocurrency may have been all the hype when it was worth more than $200 per token, but isn’t so great now that it is worth less than $30.
Hayes says that Solana has nothing to offer the market in the next cycle except its speed and “fancy math”.
“It works the first time,” Hayes says, “but not the second.”
Tokenomics On ETH
At the time of writing, Ethereum sits at around $1,306 and is currently down more than 60% from its all-time high after falling from its $4850 high.
From a multi-month perspective, Ethereum appears bearish and is now testing the upper support of its long-term descending channel.
According to data from CoinMarketCap, Ethereum is down 0.11% at the time of writing and has a market cap of 160 billion dollars.
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