Popular cryptocurrency analyst and trader Nicholas Merten thinks that crypto traders should be careful about whether alternative blockchain protocols can surpass Ethereum or at least capture a higher percentage of market share. Merten also explains the altcoins he thinks will be on the rise.
Merten calls market competition “protocol wars” and states that all of the best performing assets lately are either corporate blockchain or decentralized finance (DeFi) projects.
Merten, Cardano, EOS, NEO, Tezos and Cosmos, the owners of DataDash, report that they are showing promising metrics and need to continue to perform well next year. According to the analyst, the main question is whether these altcoins will exceed Ethereum’s protocol superiority. Merten uses the following statements about the subject:
“I have no doubt that all these cryptocurrencies we’ve looked at will probably have higher levels than Bitcoin [BTC] one year from where they are now. Probably the vast majority will experience it. You have to keep this in mind though. Whether we can really achieve a fundamental improvement on these chains, whether it will do 2 or 3x against Bitcoin, will be the question we need to answer. They can also do 10, 20, 30 or 40x. Because this time it’s not just speculation. There should be some basic information about this. There really is. Obviously, something happening in Ethereum is missing in many blockchain protocols. This is an ecosystem for developers. ”
They Will Not Pass Ethereum
Although Merten appreciates Cardano’s academic nature, he says that not much is built on it. And he says EOS is probably the second best position on the blockchain for DeFi, but the protocol still didn’t need to use any of the DeFi apps. Merten said:
“It is a problem. If there is no way to have the power to create a network effect, you can have a great blockchain, you can be much more scalable than Ethereum, but you won’t be a better blockchain protocol in the long run. ”
From an investment perspective, Merten believes that NEO, Tezos and Cosmos are worth looking into potential.