Noob Friendly Post: Ethereum Cannot and will not be Killed – Especially not by Cardano

I am posting this because when Ethereum had a massive retracement every YouTuber, Discord, and Telegram chat was talking about Cardano and how it was going to kill Ethereum. I feel as though those types of posts will encourage new people in the crypto space to panic and buy or sell assets that they are not entirely sure about. If this post helps even one person then it was worth my time.

Bolded words will appear in the glossary at the end of this post.

​

Let's talk about why that wasn't going to and isn't going to happen.

1. Ethereum has thousands of developers working on the platform which by far makes it the largest blockchain project worldwide.
2. Ethereum gas fees are actively being worked on. Gas fees are a major source of complaint for the everyday Ethereum user. There are resolutions in the works. Here are some useful terms to research if you are curious about the technical elements: MATIC, EIP 1559, Berlin update, Layer 2 solution, Optimism
3. Uniswap itself is a decentralized exchange that processes billions of dollars ($USD) of commerce on a daily basis. This exchange is built on the ETH network. There are comparable projects built on Binance Smart Chain ("BSC") but they still do not compare to Uniswaps volume.
4. Ethereum has billions of dollars worth of projects already built on its network. At present moment Uniswap and Chainlink are both ERC-20 tokens and they have a combined market capitalization of ~$28.5B. These are only the two largest tokens. There are hundreds more. For reference, Ethereum killer Cardano currently has 0 tokens built on its main net. Click me for a full link of ERC-20 compatible tokens.
5. Partnerships. Ethereum has a vast amount of partnerships with real world companies. Most recently and notably was VISA.
6. Trust and recognition. It will be difficult for any token to overcome Ethereum. Ethereum has established itself as the #2 cryptocurrency by market cap and has never surrendered that spot.

Let's talk about coins that may leech a little bit of Ethereum's market capitalization and why they are effective as well as why they may not be.

• Cardano. Cardano is the cryptocurrency that raves about it's smart contracts without actually offering any smart contracts yet. In my opinion Cardano is actually the least competitive of all the coins listed in this section. You will hear news about Cardano reaching African markets. Firstly, Bitcoin is already a well established from of commerce in these markets. Secondly, it's not as though these markets are particularly flourishing breeding grounds for economic prosperity. In the short term Cardano certainly absorbed some of Ethereum's market cap but I have suspicions that many of these holders are newer in the crypto space and will abandon ship when it is trading sideways for a while.
• Polkadot. Polkadot is an excellent project that provides a variety of viable resolutions to some of Ethereums core problems (gas fees). Although Polkadot is relatively new it has demonstrated successes recently. At this time polkadot does not offer smart contracts.
• Binance. Binance has essentially taken the coding of the Ethereum network and renamed it the "Binance Smart Chain". Although ("BSC") is more gas efficient there are a variety of restrictions that prevent this project from taking off fully. The largest restriction is that users are forced to interact with Binance at one point or another. Binance Smart Chain only serves tokens that are on the BSC. In order to get tokens that are on the BSC you must use Binance or trade peer to peer. Binance only recently launched smart contract capabilities. This token is perhaps the biggest threat to leech some of Ethereum's market cap.

​

Glossary:

Ethereum gas fees – A price paid to miners to verify transactions.

Decentralized exchange – A peer to peer trading system in which users can contribute to a liqudity pool. This differs from a centralized exchange because it is not regulated by a governing body and also does not accept fiat currency.

ERC-20 token – A token that is built on the Ethereum network. Think of Ethereum as an XBOX. ERC-20 tokens would be the games. You cannot use the games without the XBOX itself. Thus increasing the value of the XBOX.

Market Capitalization – The overall value of any given asset. The total value of all shares/tokens.

Main net – The native network of any given token. For example Ethereum, BNB, and Cardano all have their own main net.