The central theses

• Little has been spared from the market stoop of the previous few months.
• Nonetheless, different layer 1 sensible contract platforms have carried out notably poorly towards Ethereum.
• Regardless of its issues and critics, Ethereum stays the main decentralized protocol.

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Amid an ongoing crypto market correction that started final November, most of the layer 1 sensible contract platforms designed to compete with Ethereum have fallen sharply in worth phrases. Whereas Ethereum itself can also be down, it hasn’t fared as badly as a few of the protocols that goal to problem it.

Bleed towards Ethereum

Ethereum could battle alongside the remainder of the crypto market, but it surely’s holding up sturdy in comparison with a few of its primary opponents.

On November 10, Ethereum hit its all-time excessive on the identical day as its predecessor Bitcoin, surging to over $4,891 per CoinGecko. Since then, Ethereum has fallen to round $2,350 at press time. This represents a virtually 52% drop from its all-time excessive, however pales compared to the injury achieved to holders of many different layer 1 sensible contract platforms.

Solana, which emerged as Ethereum’s primary competitor in 2021, hit its all-time excessive of round $260 simply days earlier than Ethereum equaled its personal. At immediately’s costs of $69, Sam Bankman-Fried’s Layer 1 favourite is down about 73%.

Cardano has fared even worse. ADA is down 78.5% from its all-time excessive of $3.09 in September final yr. Polkadot, a competitor based like Cardano by an Ethereum co-founder, hit $55 final November however is buying and selling for underneath $12 immediately. That is a 79% loss, regardless of the venture hitting most of the key milestones in its roadmap, such because the launch of its parachains.

Fantom is down 83.5%, a collapse exacerbated by the exodus of the “Godfather of DeFi”, Andre Cronje, from the DeFi area alongside along with his peer Anton Nell, one other key contributor to the Fantom ecosystem. Earlier than leaving, Cronje led the launch of Solidly, a brand new liquidity community in Fantom’s ecosystem, however that wasn’t sufficient to carry its personal towards Ethereum. Lastly, precisely one yr in the past immediately, Web Computer systems hit their all-time excessive of greater than $700; At its present worth of $11, it has misplaced 98.5% of its market worth.

With the merge on the horizon and plenty of Layer 2 scaling efforts, there may be additionally a light-weight on the finish of the tunnel for Ethereum that different sensible contract platforms lack. Whereas Ethereum has its share of issues and critics, its standing as an business chief goes largely unchallenged.

Disclosure: On the time of writing, the writer of this text owned BTC, ETH, DOT, and several other different cryptocurrencies.

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