Yahoo Finance Top 15 Ethereum Competitors and Alternatives in 2024
In this article, we will discuss the top 15 Ethereum competitors and alternatives in 2024. If you want to skip our analysis about some of the key players in the cryptocurrency market, you can proceed to the section highlighting the Top 5 Ethereum Competitors and Alternatives in 2024.
The Global Cryptocurrency Market and a Comparison of Giants
According to a report by Grand View Research, the global cryptocurrency market was valued at $4.67 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 12.5% from 2023 to 2030, to reach $11.71 billion by the end of the forecasted period. You can also take a look at 15 Best Blockchain and Bitcoin ETFs.
Bitcoin and Ethereum are the two most traded cryptocurrencies in the world. Both Bitcoin and Ethereum utilize blockchain technology, however, they have different purposes and technical architectures. Bitcoin was introduced in 2009 by the mysterious Satoshi Nakamoto as a decentralized digital currency primarily tailored for peer-to-peer digital transactions without the involvement of financial institutions. Bitcoin emphasizes security, and scarcity with its blockchain optimized primarily for monetary transactions. Bitcoin is powered by the energy-intensive Proof-of-Work (PoW) consensus mechanism and operates on the SHA-256 hash algorithm, Bitcoin has the highest market capitalization among all cryptocurrencies, valued at over $1.3 trillion on April 14. However, its smart contract capabilities are limited compared to Ethereum. You can 15 Countries Where Bitcoin is Legal and Illegal.
Ethereum on the other hand was launched in 2015 and is a global, open-source platform for decentralized applications that empowers developers to build decentralized applications (dApps) and execute smart contracts, which are self-executing agreements encoded in code. Examples of decentralized apps that can be built on Ethereum include tokens, non-fungible tokens, decentralized finance apps, lending protocols, and decentralized exchanges. Tokens are interchangeable digital assets that represent value on a blockchain. Non-fungible tokens (NFTs) are unique, non-interchangeable tokens that represent ownership of digital items such as art, collectibles, or virtual real estate. Decentralized finance (DeFi) apps are blockchain-based financial applications that operate without centralized intermediaries, Lending protocols are DeFi apps that allow users to lend and borrow cryptocurrencies, which often use NFTs as collateral and Decentralized exchanges (DEXs) facilitate the trading of cryptocurrencies in a decentralized manner, without any intermediaries. As of April 14, Ethereum has a market cap of over $386 billion.
Ethereum charges a fee for transactions and smart contracts on its blockchain network known as Gas which is paid entirely in Ethereum coins. Gas is measured by the amount of computational effort required to execute an operation or a smart contract, the more complex the execution operation is, the more Gas is required to fulfill that operation, and can vary from time to time depending on the network’s demand. Gas fees for Ethereum transactions can range from $0.0001 to over $100, depending on the blockchain’s demand.
Key Players in the Cryptocurrency Market
Companies offering user-friendly cryptocurrency exchange platforms and providing services such as trading, lending, and wallets have contributed significantly to the growth of the cryptocurrency market and have also established themselves as key players in the digital finance industry. Some of the largest companies offering platforms and wallets for the cryptocurrency market include Coinbase Global Inc. (NYSE:COIN), Robinhood Markets, Inc. (NASDAQ:HOOD), and Block, Inc. (NYSE:SQ).
Coinbase Global Inc. (NYSE:COIN) operates a cryptocurrency exchange platform and is the largest cryptocurrency exchange in the United States in terms of trading volume. On April 3 Coinbase Global Inc. (NYSE:COIN) announced that it had obtained registration as a Restricted Dealer by the Canadian Securities Administrators (CSA), making it the first and largest international cryptocurrency exchange registered in Canada. The registration marks a significant milestone in Coinbase Global Inc.’s (NYSE:COIN) commitment to the Canadian market, following its Enhanced Pre-Registration Undertaking in March 2023 for regulatory compliance and formally launching its services back in August 2023. Coinbase Global Inc. (NYSE:COIN) plans to establish partnerships with local financial institutions and stakeholders in Canada to encourage the adoption of digital assets and promote economic development. On April 11 Coinbase Global Inc. (NYSE:COIN) announced the launch of margined Bitcoin Cash and Litecoin futures contracts by Coinbase Derivatives, making it the first CFTC-regulated exchange to offer such contracts. Dogecoin futures contracts are also expected to launch later this month. Coinbase Derivatives aims to improve access to digital asset trading by reducing upfront capital requirements and ensuring regulatory compliance.
Robinhood Markets, Inc. (NASDAQ:HOOD) provides a user-friendly platform that can be used to trade stocks and cryptocurrencies. On March 19, Robinhood Markets, Inc. (NASDAQ:HOOD) announced its official launch in the United Kingdom and offered key features and benefits for investors including options trading, 5% AER (Annual Equivalent Rate) on uninvested cash, access to over 6,000 global companies, commission-free trading, and no foreign exchange fees on trades, in comparison to the significant fees charged by other UK brokers. On February 29, Robinhood Markets, Inc. (NASDAQ:HOOD) announced its collaboration with Arbitrum, a Layer 2 scaling solution that will give Robinhood Wallet users access to Arbitrum swaps through decentralized exchanges. Robinhood Wallet users can now benefit from reduced transaction fees and faster transaction speeds on some of the most prominent networks in the cryptocurrency market. Over the next few months, Robinhood and Arbitrum will also collaborate to facilitate access to cross-chain swaps and other initiatives that are aimed at lowering the barriers to using web3 on Robinhood Wallet. Commenting on the event, Johann Kerbrat, General Manager of Robinhood Markets, Inc.’s (NASDAQ:HOOD) Crypto Divison said:
“Ethereum gas fees are an essential part of securing the network, but these same fees can hinder adoption, Layer 2s like Arbitrum, which is currently the leading chain by total-locked value, help solve this problem for our users. Accessing and transacting on L2s has historically been difficult to non-crypto natives, but Robinhood Wallet now helps strip away the complexities to help onboard those new to web3.”
Block, Inc. (NYSE:SQ), formerly known as Square, Inc. is a global technology company with a focus on financial services and owns Square, Cash App, TIDAL, and TBD. On December 07, 2023, Block, Inc. (NYSE:SQ) launched Bitkey a self-custody cryptocurrency wallet in over 95 countries across six continents that consists of three components: a mobile app for seamless transactions on smartphones, a hardware device for securely storing cryptocurrencies offline, and a set of recovery tools in case customers lose their phone, hardware, or both. Unlike traditional self-custody wallets, Bitkey uses three keys to secure cryptocurrencies: one integrated into the mobile application, another in the hardware device, and the third stored on Bitkey’s server. Any two keys can be used to move cryptocurrencies or approve other security-related actions such as initiating recovery or modifying security settings. Bitkey has also partnered with prominent platforms like Coinbase and Cash App, enabling seamless transfers of cryptocurrencies from exchanges to the Bitkey wallet.
Ethereum's decentralized platform not only facilitates digital transactions but has also transformed the landscape of decentralized applications as they operate on a distributed network of servers and are not prone to censorship and fraudulent activities. As the cryptocurrency market continues to evolve, innovations in blockchain technology will further expand the possibilities within the cryptocurrency industry. With this context, let’s take a look at the list of the top 15 Ethereum competitors and alternatives in 2024. You can also take a look at the best day trading tips for beginners.
nick-chong-0bO235Rhqec-unsplash
Our Methodology
To come up with the top 15 Ethereum competitors and alternatives in 2024, we employed a consensus approach. We consulted more than 10 articles on the internet to find the top Ethereum competitors and alternatives in 2024. Of them, we picked cryptocurrencies that appeared in 50% of our sources and ranked them according to their market cap as of April 14, 2024. Here are the top 15 Ethereum competitors and alternatives in 2024.
Top 15 Ethereum Competitors and Alternatives in 2024
15. Filecoin (FIL)
Market Cap as of April 14: $3.42 billion
Filecoin (FIL) is an open-source, public cryptocurrency and digital payment system made by Protocol Lab. Filecoin (FIL) allows users to rent out their unused storage space and earn tokens in return and creates a decentralized marketplace where one can store information securely and efficiently. Filecoin (FIL) ranks 15th on our list of top 15 Ethereum competitors and alternatives in 2024.
14. Polygon (MATIC)
Market Cap as of April 14: $7.31 billion
Polygon (MATIC), formerly known as Matic Network, is one of the top Ethereum alternatives in 2024 for processing transactions faster and cost-effectively. Polygon (MATIC) provides a solution for the Ethereum blockchain by offering a way to process transactions off the Ethereum blockchain and then commit them back to the main blockchain. Polygon (MATIC) plays a pivotal role in facilitating transactions and decentralized applications as Ethereum’s blockchain can be slow and expensive to use.
13. Chainlink (LINK)
Market Cap as of April 14: $8.58 billion
Chainlink (LINK) is a decentralized oracle network designed to connect different networks and protocols. Chainlink (LINK) enables smart contracts to securely interact with external data sources, APIs, and payment systems to expand their capabilities. Chainlink (LINK) supports data movement between all blockchains worldwide and is one of the top 15 Ethereum competitors and alternatives in 2024.
12. USD Coin (USDC)
Market Cap as of April 14: $9.69 billion
USD Coin (USDC) is a stablecoin pegged to the US dollar on a 1:1 basis. USD Coin (USDC) is issued by regulated financial institutions and is fully backed up by reserved assets. USD Coin (USDC) is commonly used for trading, investing, and transferring value on blockchain networks. USD Coin (USDC) ranks 12 in our list of top 15 Ethereum competitors and alternatives in 2024.
11. Tron (TRX)
Market Cap as of April 14: $9.87 billion
Tron (TRX) is a blockchain and peer-to-peer (P2P) network that enables content creators to sell their content directly to consumers without any intermediaries and transaction fees. Tron (TRX) is developed by the Tron network and is used for various purposes, including transactions, smart contracts, and voting on network governance. As of 2024, Tron (TRX) is one of the top competitors and an alternative to Ethereum.
10. Polkadot (DOT)
Market Cap as of April 14: $9.98 billion
Polkadot (DOT) is a scalable, secure, and decentralized multi-chain network for the next web and is built on the Substrate framework. Polkadot (DOT) allows independent blockchains to share information and assets securely and creates an interconnected and scalable ecosystem. Polkadot (DOT) is one of the top Ethereum competitors and alternatives in 2024, developers can use the Polkadot (DOT) infrastructure to create custom blockchains with larger design spaces for decentralized assets and applications.
9. Avalanche (AVAX)
Market Cap as of April 14: $14.10 billion
Avalanche (AVAX) is a blockchain platform that offers tools for creating decentralized finance (DeFi) applications, financial assets, and enterprise-scale financial solutions and is one of the top competitors and alternatives to Ethereum in 2024. Avalanche (AVAX) is also compatible with Ethereum and its network is designed on multi-chain linear scalability which can process over 4,500 transactions per second.
8. Shiba Inu (SHIB)
Market Cap as of April 14: $14.21 billion
Shiba Inu (SHIB) is a meme-based cryptocurrency inspired by the Dogecoin community and is one of the top competitors and alternatives to Ethereum in 2024. Shiba Inu (SHIB) creates a decentralized ecosystem for artists, creators, and developers to collaborate and build projects. Shiba Inu (SHIB) is the native token of the ShibaSwap decentralized exchange and is used for various purposes including as a peer-to-peer digital payment system.
7. Cardano (ADA)
Market Cap as of April 14: $17.65 billion
Cardano (ADA) is a decentralized Proof-of-Stake (PoS) blockchain that requires less energy to operate compared to the Proof-of-Work (PoW) mechanism. Cardano (ADA) was developed by Ethereum’s co-founder Charles Hoskinson as a platform for Web3 applications. As of 2024, Cardano (ADA) is one of the top competitors to Ethereum.
6. Dogecoin (DOGE)
Market Cap as of April 14: $23.95 billion
Dogecoin (DOGE) started as a joke based on the popular "Doge" meme and since then has gained a significant following and community. Dogecoin (DOGE) is a decentralized cryptocurrency that can be used for peer-to-peer transactions, tipping, and charitable donations and is one of the top 15 Ethereum competitors and alternatives in 2024. Dogecoin (DOGE) is known for its strong community spirit and has been supported by various celebrities and influencers.
Click to continue reading Top 5 Ethereum Competitors and Alternatives in 2024.
Suggested Articles:
Disclosure: None. Top 15 Ethereum Competitors and Alternatives in 2024 is originally published on Insider Monkey.
