Critics have been attempting to unfold concern, uncertainty, and doubt on the No. 2 cryptocurrency in mild of its scaling points. It’s true that Ethereum is combating congestion as community utilization is above 94 p.c. As a end result, it turns into expensive to run purposes.
Nevertheless, the cryptocurrency’s greatest downside seems to be its supply of power. The community is congested as a result of there are such a lot of builders constructing decentralized purposes (DApps) on the blockchain. In addition, the scaling concern is momentary, because the Ethereum neighborhood has an answer with a timeline in place.
Ethereum Dominates All Cryptocurrencies in Number of Developers
When it involves the variety of builders engaged on an ecosystem, Ethereum is king of the hill. It is so overwhelmingly dominant on this regard that the runner up is to date behind.
According to a recent study by Electric Capital, there are 1,156 monthly average developers. That number is four times greater than the next biggest ecosystem, which is Bitcoin. The study also noted that other ecosystems and crypto networks have fewer than 250 developers.
This metric is so important because the cryptocurrency with the highest number of developers is likely the one that has the most value.
Ethereum Leads All Platforms in Total DApps
Another reason why the Ethereum network utilization is sky high is that it leads all blockchains in total DApps and daily active users.
DApp usage has been steadily growing that it’s no wonder that the network is congested. This issue won’t last though, as the Ethereum community is working towards a solution.
Introduction of Sharding in Early 2020
The Ethereum ecosystem plans to eliminate its scalability issue with a long-term solution in sharding. Simply put, sharding breaks up the blockchain into smaller segments. This will lead to a significant uptick in transaction speed.
According to an Ethereum Foundation call, sharding will be launched by January 2020. Hence, we’re a few months away from a monumental development in the Ethereum network.
Analyst: Ethereum Is Short-Term Bearish
“Price has found support in the green demand zone and is presently working towards breaking descending (dashed) resistance. A move through that line would indicate likely further price appreciation.”
Disclaimer: The views expressed on this op-ed are solely these of the creator and don’t symbolize these of, nor ought to they be attributed to, CCN Markets.