How Cosmos Could Outgrow Ethereum, Making The Case
April 06 2022 - 6:04PM
NEWSBTC
In a couple of months, Ethereum should fully deploy its
Proof-of-Stake (PoS) capabilities with “The Merge”. The network
continues to dominate the decentralized finance (DeFi) and
non-fungible token (NFT) sector, some of the most important
innovative trends in the crypto industry. Related Reading | The
Last Time This Bitcoin Indicator Turned Bullish It Saw a 65% Hike,
Will It Happen Again? At the time of writing, Ethereum trades at
$3,200 with a 6% loss in the last 24-hours. ETH’s spot as the
blockchain holding popular sector continues to be put into
questioning as the “Ethereum Killers” gain market share. Cosmos and
its ecosystem have been attracting attention as Terra and Osmosis
become more popular. Recent data posted by monitor Token Terminal
suggest Ethereum’s daily protocol revenue has been migrating
towards Terra (LUNA) and Avalanche (AVAX). As seen below, this
metric saw an increment back in October 2021. ETH’s daily protocol
revenue peaked in November that year and began a downside trend
from around $80 million to below $20 million. Token Terminal noted
the following on this trend and the impact of the upcoming “Merge”
on stopping it: And the past 90 days the rate of change in revenues
is also slowing. AVAX, Luna and some other protocols are taking
market share! The merger may flip this trend. In that sense, Token
Terminal wonders if Cosmos could become the fastest growing
blockchain and outperform Ethereum on these terms. In favor of this
thesis, the monitor pointed out the explosion in the Cosmos
ecosystem and the time it has taken for it to reach its current
adoption levels. Token Terminal said: (…) what are the odds of
Cosmos eventually outgrowing Ethereum? Just consider how long it
has taken for L2s to go live versus the pace at which new
IBC-enabled chains are going live. Ethereum To Keep Its Spot As
King Of DeFi? Unlike Ethereum, the protocols build with Cosmos
infrastructure (CosmosSDK) seem more flexible and with potentially
fewer tradeoffs than if they were built on layer 1. By using this
development kit, the project can create “a blockchain that’s
dedicated to the asset exchange use case”. Token Terminal claims
this provides the project with more optimization and with tools to
improve upon Ethereum’s limitations. As seen below, the Cosmos
ecosystem records important growth since 2020. As NewsBTC reported,
two experts believe the opposite. Former BitMEX CEO Arthur Hayes
and Senior Commodity Strategist for Bloomberg Intelligence Mike
McGlone are bullish on Ethereum going into “The Merge”. Hayes
believes that this will set ETH to a 5-digit price and re-take the
market share it has lost from the “ETH Killers”. Hayes argues that
Ethereum is still the most active blockchain in terms of
development and this event will only accelerate this innovation
process. Related Reading | TA: Ethereum Turns Red Below $3.4K, Why
Upsides Might Be Capped McGlone agrees and predicted ETH’s price
could reach similar levels around $10,000. The Bloomberg
Intelligence expert believes Ethereum is becoming internet
collateral with strong support for future appreciation of its DeFi
and NFT dominance.
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