EOS and Ethereum are the world’s two largest blockchain projects when it comes to smart contracts. Both have a high potential, which is reflected in their recent price actions.
Ethereum, the second-biggest crypto by market cap, broke a record high as it touched $1,867 on Valentine’s Day weekend, right before the correction. Its futures contracts went live last week on Chicago Mercantile Exchange, fueling the rise. Ethereum’s price jumped up by more than 21% in less than a week, bringing its market capitalization to over 200 billion dollars.
Meanwhile, EOS increased by over 70% during the same time frame. The blockchain-based decentralized platform for decentralized applications jumped to $5.48 on Sunday and now ranks 17th among the Top 20 biggest coins by market.
Both Ethereum and EOS try to achieve similar goals. But EOS, the so-called Ethereum killer, targets the major vulnerabilities of the Ethereum network: scalability and transaction fees. EOS can serve up to 10.000 transactions per second, while Ethereum supports only 30.
Ethereum is a platform where every transaction costs gas. The transaction complexity and network volume can affect the price. Meanwhile, no gas or other transaction fees apply on EOS.
Users lease their tokens in order to cover the bandwidth to pay for a transaction.
In such circumstances, the future may look brighter for EOS, at least until Ethereum’s major update Ethereum 2.0. But is it really?
Looking to the flipside of facts, Ethereum is the world’s second-largest cryptocurrency behind Bitcoin. Hundreds of cryptocurrency tokens are built on top of it, Ethereum has over 1000 decentralized apps operating on its network.
Multiple other so-called Ethereum-killers are thriving. Cardano (ADA) recently introduced smart contract functionality, which allows creating and deploying decentralized apps and even their own custom tokens on the Cardano blockchain. Polkadot also gives the ability to create new blockchains that can communicate with each other.
Both of these projects already share top 4 and top 6 positions in terms of the most valued digital assets. Having in mind that EOS is the centralized blockchain protocol, it has the potential to be vulnerable to certain risks, for example, centralized control. This might be a disadvantage in tight competition with decentralized future rivals.