The second generation cryptocurrency Ethereum [ETH] was launched in 2015 as a successor to Bitcoin [BTC] and it offered tools that enabled developers to create apps that could perform automatic transactions rather than serving as an exchange.
According to reports, the network running the Ether cryptocurrency is losing its market share. Also its competitors are gaining more grip in the crypto market as some startups are utilizing coins such as EOS and Stellar to raise funds through initial coin offerings.
Co-founder of hedge fund Multicoin Capital Mangaement in Austin, Texas opinionated that there were no good options other than ethereum until the last six to nine months but now there are plenty of better options.
According to tracker DappRadar 28 percent of dapps users were on the Ethereum network as of January, compared with 100 percent a year earlier. 48 percent of the active dapp users were accounted on EOS and Tron constituted 24 percent. They got much adoption because they can provide better seed transactions per second.
Vitalik Buterin, co-founder of etherum acknowledges the change though he explains it’s not something to worry about.
Ternio Chief Executive Daniel Gouldman said that as the etherum network is slow and expensive, users is opting for stellar which costs less than ethereum transactions in much less time.
Ethereum is about to face the biggest challenge as Binance plans to launchBinance Chain this year. Binance has plans to migrate coins, which currently runs on ethereum to a different network.
Despite this fact etherum has a vibrant community and investors still believe they can raise the most funds with etherum. The project has a massive support base and developer support. According to reports developers are working to bring advancement in the network’s throughput and transaction speeds, with improvements expected in the near future.