Cardano, Solana and Avalanche: what to expect from Ethereum’s competitors in 2023

As reported in 2022, Ethereum (ETH) competitors are having a bad year. Although they were the big highlights of 2021, they have suffered from a bear market in recent months along with other altcoins. But could this change in 2023?

One of the big bets for market growth over the next year is scalability-related projects on ETH’s network, such as Polygon (Matic) and Arbitrum. As Surge is due in 2023 and will be the update that will bring a more scalable blockchain to the leading smart contract platform, the issue is expected to be widespread and lead to potential capitalization gains for altcoins.

However, that doesn’t mean that Ethereum killers won’t have their place in the spotlight. Although they have challenges that need to be overcome, some highlights can be seen on Cardano (ADA), Solana (SOL) and Avalanche (AVAX). Let’s take a look at what 2023 could look like for Ethereum’s main competitors.

cardano

First up is the oldest altcoin on this list. Cardano was launched in 2017 and has one of the strongest communities in the blockchain industry. Although ADA has lost more than 90% of its all-time high seen in 2022 in September of last year, it has retained its network validators with one of the most lucrative staking programs in the market.

Furthermore, Cardano managed to cross the 4,000 smart contract mark and is one of the most developed blockchains in the crypto market, proving that developers have maintained their interest in altcoins. Right after Solana’s massive drop, the cryptocurrency has had even more room to grow in capitalization.

Furthermore, in 2023, the stablecoin will arrive on the ADA network, and this could be a bullish catalyst for the cryptocurrency. Eventually, more stablecoin assets may continue to increase their total value locked (TVL) in decentralized finance (DeFi).

However, the dark side of stablecoins could affect Cardano as well. In 2022, the crypto market saw how projects dealing with stable assets suffered, as maintaining the token’s parity with the US dollar was not an easy task. Waves, Terra Classic and Tron have all shown major failures due to their stablecoins, and this could be the downside that binds ADA next year.

solana

Without a doubt, Solana is the altcoin on this list that needs to reinvent itself the most, not just because of SOL’s constant network outages.

The altcoin has experienced a sharp decline since it is a crypto backed by Sam Bankman-Fried (SBF), and the entrepreneur’s companies have invested huge amounts of money not only on Solana but also on tokens from its ecosystem.

However, this has not affected Solana’s growth in the non-fungible token (NFT) space. After Ethereum, Solana’s network continues to be the leader in this market. Of course, it should be noted that Solana has a fast network and low fees, something that while not unique to altcoins is attractive nonetheless.

Meanwhile, in 2023, Solana may not only stick to these points, as it may not be a bullish factor for its coin. The NFT market is seeking more maturity, so higher levels may not be seen in 2021, and this may not endear Solana in a market where scalability alone does not count for capitalization highs.

avalanche

Avalanche was also one of the cryptos negatively affected by the collapse of 2022. When the Terraform Labs empire collapsed in May, AVAX fell 30%. In fact, this was a major fear for altcoin holders. Touching the $32.50 mark, the crypto reached a level not seen since September 2021.

The decline occurred as investors feared a selloff of AVAX held by Luna Foundation Guard (LFG). The foundation bought more than $70 million in an avalanche to keep Crypto as custodian of the former UST peg.

However, this was no deterrent for the Avalanche team to roll out important partnerships and releases that could help build an Ethereum competitor in 2023. A notable example of this is the advent of the Core cryptocurrency wallet, which, in addition to being compatible with Avalanche, is compatible with other EVM-compatible blockchain ecosystems.

The wallet has also caught the attention of Coinbase, one of the leading exchanges in the crypto market. The bitcoin and altcoin trading platform now gives its users a new option to convert money into cryptocurrencies in a core extension for use in DeFi, NFTs and transfers.

Source: news.google.com