The crypto landscape has shifted positively in the past few months. The shift has emphasized the performance of PoS (proof-of-stake) protocols given their popularity.
Names like Solana, Cardano, and Ethereum have ruled the PoS coin category. The coins compete for market dominance, but which is the best option right now? Let’s find out why ETH, SOL, and ADA are the future of cryptocurrencies, along with their strengths and weaknesses.
Ethereum (ETH): The Giant
Ethereum is the second-biggest crypto in the world. The network boasts the most well-established developer community with a wide range of dApps.
Ethereum is presently trading consistently between $3,500 and $3,6000. The Ethereum network has a market capitalization of 421,402,520,500 USD, the second largest in the market. With the Ethereum 2.0 upgrade, Ethereum transitioned to the PoS paradigm and addressed the scalability concerns.
The network is primarily affected by its PoW (proof-of-work) consensus technique. The most serious threat to Ethereum is congested network traffic and hefty transaction costs.
Solana (SOL): The Promising Contender
Solana ranks among the most popular and best-performing networks in the market. Ranked 5th among the top cryptocurrencies, the coin is now trading around the 171-dollar mark.
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SOL also boasts a market cap of 76,295,632,617 dollars currently. With a transaction processing speed of 50,000 TPS, Solana offers a prompt experience to users.
Moreover, its Proof-of-History consensus mechanism also allows for low transaction fees. That is why Solana stands among the most sought-after networks for developers.
On the other hand, stability is one of the network’s main concerns. Due to multiple disruptions, concerns have been raised about Solana’s capacity to manage large amounts of transactions on the network.
In addition, the network is quite young compared to Ethereum, leaving developers to ask for more community growth.
Cardano (ADA): The Innovator
Cardano also ranks among the top 10 cryptocurrencies in the market. Ranked 10th, the coin boasts a market cap of 20,760,411,816 dollars.
The network has adopted a thorough approach to develop a P2P process to ensure its scalability and security. That is how Cardano built its renowned PoS consensus mechanism, Ouroboros.
Cardano actively adds new features to its network, like Alonzo Hard Fork with more updates to come. In addition, its price point is lower compared to SOL and ETH, making ADA an attractive entry point for new investors.
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However, its numbers need to impress in front of Ethereum. The Cardano ecosystem packs a limited amount of dApps, hindering user adoption. Moreover, its systematic approach can also get in the way of fast-paced innovation.
Overall, the future of cryptocurrencies seems to be in safe hands with ETH, SOL, and ADA. While the networks have screws to tighten, their upcoming updates are a right step towards progress. Therefore, there is no single winner among the PoS coins, with each alternative offering a different value generation approach.
