Andreessen Horowitz (a16z) has introduced the State of crypto report, suggesting that Ethereum is leading the blockchain race but isn’t clearly winning.
Crypto venture fund giant Andreessen Horowitz claims demand on Ethereum is “unmatched” despite the network’s high transaction fees, Cointelegraph writes.
The “State of Crypto” report, with the firm’s data scientist Daren Matsuoka, head of protocol design and engineering Eddy Lazzarin, general partner Chris Dixon and head of content Robert Hackett all working together.
Ethereum vs competition on blockchain
According to the report, Ethereum towers over the competition in terms of builder interest. The Ethereum network has around 4,000 active monthly developers compared to second-ranked Solana at 1,000.
Bitcoin and Cardano are next in line at roughly 500 and 400 apiece, respectively.
Ethereum’s lead has much to do with its early start, and, the health of its community, the researchers note.
The also emphasized the significance of development continuing to surge on the network despite high transaction costs
The demand for Ethereum can also be seen across the report’s estimated transaction fees paid on a blockchain. For example, over a seven-day average, calculated as of May 12, Ethereum accounts for $15.24 million. To provide contrast, BNB Chain, Avalanche, Fantom, Polygon and Solana account for roughly $2.5 million worth of fees combined.
The report notes that layer-2 scaling solutions are fighting to bring Ethereum’s fees down and transaction speeds up. The long-awaited upgrades are coming to Ethereum to make the network more efficient and cost-effective.
But this is yet to happen. As of now, competing blockchain networks are well ahead of Ethereum in terms of the number of active addresses and transactions. The list of those networks include Solana, BNB Chain and Polygon.
For example, the study shows that over a 30-day average as of May 12 Ethereum has 5.5 million active addresses that account for 1.1 million daily transactions.
That’s rather unimpressive when compared to Solana with its mammoth 15.4 million active addresses and 15.3 million daily transactions. BNB Chain ranks in third with 9.4 million and 5 million, which makes Ethereum only third in this list, followed with Polygon which totaled around 2.6 million and 3.4 million.
The State of crypto report suggests nobody is going to be a clear winner here. Moreover, there will be no winner-takes-all situation in general.
“Blockchains are the hit product of a new computing wave, just as PCs and broadband were in the ‘90s and 2000s, and as mobile phones were in the last decade. There’s a lot of room for innovation, and we believe there will be multiple winners.” the authors claim.