ETH is advancing, but the competition is not sleeping2 min read
The growing popularity of the DeFi sector also brings with it competition between the representatives of this crypto industry itself. ETH is still a unit. However, platforms such as ADA, UniSwap, SushiSwap and Polygon are starting to breathe down his neck.
ETH must fight the competition
Probably one of the biggest shortcomings of the ETH network is the transaction fees, which were still in April this year at the level of 70 USD. This is a really huge number that not everyone can afford. However, the network was subsequently able to work on this problem, and currently the value of fees is at the level of 3 USD. Many problems have been solved with the London hard fork, but will it be enough to stop the competition?
As you may have noticed in our last article, the decentralized SushiSwap has started working with the Polygon network. This step seems to have been the right decision.
SushiSwap came with a very interesting comparison. ETH transactions were created on the exchange, generating fees worth an incredible $ 2.9 million. How did Polygon cope with that? The fees on this blockchain represented only 1 773 USD. At the same time, transactions were up to 2.25 times faster. The cost savings themselves thus represented an extreme value 123,500%!
What is the problem with the Polygon network?
Polygon is facing a very special problem, but it is not a complete disaster. There is a solution to everything. While we can talk about full decentralization in the case of this network, there is one fundamental problem. The network is under the control of a small number of stakers.
According to the latest published data, up to 50% of the staked MATIC token is owned by Binance and Foundational Team MATIC. Paradoxically, a smaller number of concentrated stakers is a problem. A smaller number of individuals means faster negotiations and the subsequent initiation of arbitration changes.
In this article, we took a closer look at the advantages and disadvantages of these networks. However, it is not possible to clearly define who is the winner from the above information. The advantages and disadvantages figure in every platform. It is therefore necessary to monitor other important project updates that could shift the scales to one side. ETH is still leading, but the competition is not asleep.
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