Ethereum has been the second most capitalized coin for year. The cryptocurrency has maintained this position despite the volatility and uncertainties associated with the coin market. With a number of blockchains with the ability to host decentralized apps and smart contracts, will another cryptocurrency replace ether as the second most capitalized coin? This is the question that Lark David @CryptoLark asked on Twitter.
Leading By A Wide Margin
Ethereum currently has a market capitalization of $356 billion and has been sitting comfortably as the second ranking coin. It is followed by Tether (USDT) which has a market capitalization of $83 billion. The third token by ranking is Binance Coin (BNB) with a market capitalization of $66 billion. It is important to note that the Binance chain also supports smart contracts and hosts a number of decentralized applications (dApps).
A Potential Challenger
According to Tajo Crypto, a crypto market analyst, this places BNB in a strategic position to challenge Ethereum for crypto market share. In a post on Twitter, they wrote:
“Ethereum is likely going to maintain its number two spot for the foreseeable future. The only coin that has the potential to displace it is BNB. BNB already has more volume of users in its blockchain and more people are using BNB Chain to build dApps.”
The ranking of cryptocurrencies is a function of the interest investors have in these coins. Just a couple of years ago, Ripple (XRP) was the third most capitalized coin. XRP is presently ranking number 6 after dropping 3 points. The interest of investors in Ripple is no doubt influenced by the SEC lawsuit against Ripple Labs, the company behind XRP.
TripleB, another Twitter user, believes that Ethereum stands little chance of consolidating in the long run and staying at the number 2 spot. In his opinion, the main setback of the cryptocurrency is its energy-intensive proof-of-work consensus protocol. They’re of the view that the planned migration to proof-of-stake will be met with several challenges. They said that a PoS protocol will give the Securities and Exchange Commission (SEC) the leverage to go after the network as in the case with Ripple.
“Ethereum will constantly fail to switch to pos and be held accountable for it unfair ethics via the sec ..the gas fees are it’s downfall ..when it has to use another crypto to transfer it’s inevitable to fall from #2”
Ethereum Can Be Beaten
— Crypto Trainer (@CryptoTrainer9) April 23, 2022
Another comment from @CryptoTrainer9, highlighted that Ethereum can be beaten by any other blockchain that gives users all that Ethereum provides at a cheaper and faster rate. They stated that this could happen within a year.
Another user @fox0mns maintained that no altcoin will displace Ethereum from the second spot because the network is innovative. He stated that with Ethereum 2.0 in the works that Ethereum will continue to maintain its leadership of the altcoin market.
Bitcoin maintains its leading position as the most capitalized coin at $755 billion.