In a free and unregulated market, it is only natural that competition will emerge, and proponents of free markets believe that this competition helps to propel platforms forward, while simultaneously providing investors with multiple investment options to choose from.
Ethereum, which is widely hailed as one of the most popular open-source blockchain platforms was long seen as the best in the industry, but growing competition from competing blockchain projects, like EOS, Tron, and NEO, may be reducing ETH’s market share and causing it to lose its lure.
Ethereum (ETH) Faces Downwards Pressure
Ethereum, like most cryptocurrencies, has witnessed less-than-positive price action over the past year, with ETH plummeting to lows of roughly $90 from highs of $1,400. Ethereum is currently trading up from its lows at its current price of $140.
Although ETH has been (mostly) able to maintain its position as the second largest cryptocurrency by market cap, it has not recovered nearly as much of its losses as competing blockchain platforms have.
EOS, which is widely considered to be a competitor to ETH, is currently trading at $4.32, up significantly from its 2018 lows of under $1.70. Tron (TRX) has also posted a slightly better recovery from its all-time-lows than Ethereum, although it has not surged as much as EOS. TRX is currently trading at $0.024, up from its 2018 lows of $0.011.