Top Analyst States That ‘ETH Killers’ Are Vying for Second Place, but Highlights Ethereum’s Primary Downside

When it comes to smart contracts and decentralized applications, Ethereum stands out as the dominant player. In a recent Twitter thread, crypto educator Kara Szabo delineated the strengths and potential challenges facing Ethereum. The analysis brought up pivotal points that offer a nuanced look into the platform’s evolution and the broader crypto landscape.

The Birth of Smart Contracts

The idea of smart contracts, essentially self-executing programs that activate when predetermined conditions are met, was conceptualized by Nick Szabo in 1996. This concept ranks as Szabo’s second most impactful contribution to the crypto-verse, his first being Bit Gold—a precursor to Bitcoin, crafted four years later.

Ethereum has consistently enjoyed the first-mover advantage in the smart contract sector since its launch in 2015. Szabo argues that overcoming this foothold would require massive improvements in end-user experience, something that rival projects termed “ETH Killers” are unlikely to achieve. The implication is clear: these competitors may be destined to vie for second place rather than dethroning Ethereum.

Trade on US-Banned Exchanges With No KYC 🤫

Tired of missing hot new listings because your favorite exchange is banned in the US? 🇺🇸

With RocketXchange you can finally trade on Kucoin, ByBit and more without registration or KYC! 🙌

Simply connect your wallet to access every coin. No VPN needed.

Seamlessly bridge between EVM, Solana, Cosmos and 100+ chains. Discover the next crypto gem with low fees.

Take your trading to the next level with:

  • Instant access to banned CEXs 🚫
  • No KYC required 🙅‍♂️
  • Trade on your terms – no registration required
  • Maintain full custody – tokens stay in your wallet
  • Access liquidity across leading DEXs and CEXs
  • Bridge assets quickly between any blockchain

Escape CEX limits today with RocketXchange!

Show more +

The expected approval of Ethereum-based ETFs (Exchange Traded Funds) will likely boost the platform by inviting a flood of institutional investment. Unlike Bitcoin, Ethereum’s value proposition, which involves hosting decentralized applications and smart contracts, is easier for traditional tech investors to grasp.

Additionally, its move towards a more eco-friendly Proof of Stake (PoS) consensus algorithm makes it attractive to ESG-focused investors. The capacity to earn yield and a less polarized community, as evidenced by the absence of “laser-eyed” profile pictures, further burnish Ethereum’s appeal for institutional investors.

Scalability and the Pyramid Structure

One of the historical challenges Ethereum has faced is scalability, specifically the limited block space leading to high transaction fees and delays. According to Szabo, Layer-2 (L-2) solutions have recently emerged to effectively scale Ethereum’s base layer (L-1).

It’s projected that subsequent layers (L-3, L-4, and beyond) will be developed to scale the L-2 solutions, creating a pyramid-like structure. This is poised to benefit Ethereum investors, who would ideally sit atop this hierarchical model.

Major corporations are increasingly venturing into the Web3 domain and they are choosing to integrate with Ethereum. Szabo highlights that companies like Coinbase, PayPal, and even Coca Cola are bolstering Ethereum’s ecosystem, further extending its lead over competitors.

Community Challenges

The primary downside for Ethereum, as pointed out by Szabo, is the relative lack of a robust community when compared to some other crypto assets. A strong community can nurture long-term investors who may act as market stabilizers, a feature that Ethereum could certainly benefit from.

Overall, Ethereum’s merits far outweigh its drawbacks, making it a safe bet, especially in an impending bull market. Szabo’s thread strongly suggests that a portfolio lacking a substantial Ethereum investment would be an incomplete one. Whether one is a retail or institutional investor, Ethereum presents an array of compelling reasons for strong consideration in any crypto-centric investment strategy.

We recommend eToro

74% of retail CFD accounts lose money.
Active user community and social features like news feeds, chats for specific coins available for trading.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy thetrades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of


Rene Peters
Rene Peters

Rene Peters is editor-in-chief of CaptainAltcoin and is responsible for editorial planning and business development. After his training as an accountant, he studied diplomacy and economics and held various positions in one of the management consultancies and in couple of digital marketing agencies. He is particularly interested in the long-term implications of blockchain technology for politics, society and the economy.

We will be happy to hear your thoughts

Leave a reply