These cryptocurrencies provide mediums for users to store money in digital or liquid forms without going through traditional centralised institutions such as banks while remaining anonymous as they do not have to provide personal details. Cryptocurrencies run on blockchains and it allows the record of all transactions by currency holders to be confidential.
In 2021, cryptocurrencies enjoyed a remarkable success that had not been experienced for some time. However, in 2022, the market has faced a few dips and even came close to a halt in the first few months of the year. Major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) suffered from the market slump – which has created the need for alternative investments. Interestingly, Mushe Token (XMU) is the new coin on the block that investors should be considering for future investments.
In terms of global market capitalisation, Ethereum is the second most valuable cryptocurrency in the crypto market. Since its inception in July 2015, it has been Bitcoin’s (BTC) biggest competitor. Ethereum manages to outperform Bitcoin by uniquely establishing a niche for itself in the crypto industry as the front running altcoin.
Ethereum is adopting a new system that will see it transition from a Proof of Work (PoW) consensus model to a Proof of Stake (PoS) technique. In the PoW models, Ethereum users are left to solve complex mathematical problems to validate transactions. However, once fully transitioned to the PoS model, validators will be used to validate transactions, and earn a part of their holding as an incentive.
Ethereum is expected to be more energy-efficient and consume 99% less once PoW is fully incorporated into the blockchain network. It will also be faster and cheaper, possibly allowing Ethereum to overtake Bitcoin as the Top Dog of the crypto industry. Many analysts predict that Ethereum will experience a boom and its value will skyrocket.
Solana (SOL) is similar to Ethereum considering that it was created to support decentralised applications and is already supporting several projects in the GameFi, DeFi, and NFT ecosystems. Many people switched to the use of Solana (SOL) due to its fast speed as well as to gain from the increase in popularity of NFT.
In 2021, the price of Solana increased by more than 11000%, thus proving itself to be a game-changer in the crypto world. Interestingly, the main advantage of Solana over other cryptos is its fast processing speed and low transactional fees. BTC is capable of about 7 transactions per second while Ethereum’s speed is just slightly higher. However, Solana can perform thousands of transactions per second.