Ethereum As An Altcoin? SFOX Explains Why ETH Is No Longer An Alternative Cryptocurrency
Ethereum Is No Altcoin – Here Are Some Reasons Why
For a good number of people across the world, the one digital asset that sits on the throne of Crypto is Bitcoin. While this is true by a number of key metrics, like market capitalization, market dominance, along with being the most popularly known asset of the entire category, it comes at the expense of others.
Ethereum is a good example. It's commonly used developers looking to create their own decentralized apps (dApps). But, because of Bitcoin's dominance, it, along with other coins, get placed under the same, overarching category of ‘Altcoin.'
Should we try shaking up the format for labeling these crypto-assets? This is not exactly a new kind of talking point, but Ethereum has been responsible for a lot of innovation. More than enough to be quantified as a big coin in its own right. Here are some of the reasons why.
Ethereum Has A Lot In Common With Bitcoin
According to recent studies performed by the San Francisco Open Exchange (SFOX), the team concludes that “it may no longer be accurate to classify ether as an ‘altcoin.’” Just why is down to the fact that the amount of correlation between it and other altcoins is getting weaker.
Meanwhile, the amount of correlations that Ethereum shares with Bitcoin are more glaringly apparent. Over the last couple of months, according to the SFOX research, the rate of correlation that Ethereum had with Bitcoin was 0.788, while counterparts like Bitcoin Cash reached only 0.638, Litecoin was even lower at 0.577, while the likes of Bitcoin SV and Bitcoin Classic scored less than BCH at 0.619 and 0.602 respectively.
The conclusion of SFOX's research? That Ethereum is steadily becoming something worthy of its own categorisation, stating that it's transforming into “a blockchain that is publicly recognized as an asset on its own terms, much like bitcoin.”
Ethereum Has Become The World's Largest Blockchain Platform
Even though Bitcoin has become known as the ‘Original' crypto. When it comes to volume and application by developers, Ethereum is the largest blockchain by far. According to various studies, there are anywhere from 1,600 to nearly 3,000 dApps active on the platform.
While there are counterpart platforms out there, like TRON, that have more active users, Ethereum still has them beat on the total number of dApps actively used.
Ethereum is Second Place to Bitcoin in Market Capitalization
This is according to statistics from this month (July). But as of right now, Ethereum is a strong second place to Bitcoin.
Ethereum is Host to The Largest Blockchain Community
Compared to other blockchain solutions out there, which includes Bitcoin. There are twice as many developers making use of Ethereum than any other. This is according to more recent reports from the Cryptocurrency asset management company – Electric Capital.
In this report, Electric Capital found that more than 216 developers work on top of the Ethereum platform on a monthly basis. Coinciding with this report, The Block found that there are anywhere from 250,000 to nearly 400,000 developers continually building on the platform.
After Bitcoin, Ethereum is One of the Most Talked About Cryptocurrencies
Considering the kind of an incredible size of its community of daily active users and developers are, it doesn't come as much of a surprise to consider the fact that Ethereum is the second most frequently discussed cryptocurrency out there.
This is further substantiated by a study conducted by the Pacific Northwest National Laboratory too. The research analyzed a wide range of cryptocurrency-related discussions over Reddit and found that, among those digital assets out there, only Bitcoin managed to surpass Ethereum, with Monero being a contentious third.
Ethereum Is Renowned For Being the Most Decentralized Blockchain Platform in Existence
According to some research conducted by the digital analytics tool – Ethernodes – Ethereum plays host to roughly 17,000 nodes. All of which support the existing blockchain and autonomously support it across six continents.
While this is contested by Bitcoin, which hosts nearly four times that amount (66,000). It should be pointed out that a large proportion of these same nodes are concentrated in data centres.
Ethereum Is the Single Most Active Smart Contract Platform
When it comes to the top 100 most commonly used and traded tokens in relation to market cap, nearly 94 percent of these are built on top of Ethereum.