As Ethereum continues to dominate the DeFi space new contenders like Solana, Cardano, and Rexas Finance are gaining traction with investors. Each of these projects is innovating in ways that could eventually challenge Ethereum’s position, each bringing unique benefits and developments to the table.

Rexas Finance is focused on tokenizing real-world assets (RWA), fueling a revolution in ownership and liquidity in decentralized finance (DeFi). On the other hand, Solana’s high-speed, low-cost blockchain and Cardano’s focus on scalability, sustainability, and smart contract integration position them as serious competitors in the evolving crypto space.

Rexas Finance (RXS): rising beyond RWA tokenization

While Ethereum faces market fluctuations and short-term uncertainty, the real-world asset (RWA) sector is experiencing significant growth, and Rexas Finance (RXS) is at the forefront of this transformation.

By integrating physical assets like real estate, commodities, and art into blockchain technology, Rexas Finance offers a compelling solution for investors seeking stability and diversification.

RWA tokenization makes traditionally illiquid assets more accessible by allowing fractional ownership, enabling investors to contribute as little as $100 or as much as $1 million.

Rexas Finance’s model opens up opportunities that were previously out of reach for many, democratizing asset ownership and providing access to a global marketplace of valuable assets. This innovative approach gives Rexas Finance a solid foundation to potentially rival Ethereum in terms of market influence.

Solana (SOL): attracting investor interest

Solana has been gaining attention from investors thanks to its recent price movements, which have sparked optimism in the crypto community.

According to several analysts, Solana’s relatively low open interest of $1.76 billion is a positive sign, suggesting that the risk of steep downward price movements is limited. Currently trading around $137, Solana has shown strength in its price recovery and is expected to continue its upward trend.

Despite minor bearish sentiments among short-term traders, Solana’s long-term potential remains strong due to its rapid transaction speeds, low costs, and strategic partnerships.

The broader market’s bullish momentum, fueled by Bitcoin’s recent gains, is expected to support further price increases for SOL. With its cutting-edge technology and scalability, Solana is well-positioned to secure a top spot among the largest cryptocurrencies.

Cardano (ADA): a leading competitor

Cardano (ADA) has also been generating excitement, with bullish technical signals suggesting its potential to challenge Ethereum’s position.

One key development is Cardano’s recognition of the $0.32 horizontal support level, which has held for nearly two years.

This stability reinforces investor confidence in ADA, and recent indicators, such as a positive divergence in the Relative Strength Index (RSI), point to an impending trend reversal that could see Cardano’s price rise significantly.

Cardano’s transaction volume recently peaked at $6 billion within a week in September, further highlighting the growing interest in the platform.

Analysts have noted a bullish pattern in Cardano’s price action, with some predicting that ADA could reach a minimum of $0.61.

In addition to price trends, the expansion of smart contracts on Cardano’s framework and the continued growth of its ecosystem position it as a strong candidate for growth during the current bull market.

Conclusion

Rexas Finance is rapidly emerging as a strong contender for the second-largest cryptocurrency position, thanks to its innovative approach to real-world asset tokenization.

By bridging physical assets with blockchain technology, Rexas Finance offers stability, diversification, and liquidity, setting it apart from competitors like Solana and Cardano.

With the potential to revolutionize asset ownership, Rexas Finance has a solid chance of gaining significant market influence and potentially overtaking Ethereum in the race for dominance.

However, both Solana and Cardano are also making strides with their technological advancements and market performance, making this competition one to watch closely.

Digital currencies like Ethereum and Bitcoin are leading the way in the growing recognition of crypto assets as decentralized money. However, a market expert believes that ETH might be the true standard of decentralized money, providing unmatched programmability and flexibility in contrast to other cryptocurrencies.

Ethereum Is Much More Than Decentralized Money

Anthony Sassano, an investor and founder of the Daily Gwei, has claimed that Ethereum (ETH) is decentralized money, suggesting its capacity to transform the global financial system. The expert declares ETH decentralized currency because it is decentralized and powered by blockchain technology, allowing the execution of peer-to-peer transactions without the need for intermediaries.

According to Sassano, ETH is self-managed and the only way it can be taken from its holder is either by force or hacking. In contrast, the investor highlighted that the two most widely used stablecoins in circulation today such as Tether (USDT) and USDC, are fully centralized and feature built-in remote freeze capabilities despite making them self-custody.

Even though stablecoins serve a purpose within the dynamic Ethereum ecosystem, Sassano claims the stable assets are not and will never be a rival to ETH as the decentralized and credibly neutral money in the financial landscape.

Despite the notable volatility of Ethereum in comparison to USD-pegged stablecoins, the expert noted that when utilizing ETH as a store of value in the long term, its volatility can be seen as a futures wager on the altcoin’s potential to become the preferred form of payment for both human and machines.

Considering all of these, Sassano is confident that ETH is much more than just decentralized money. As a result, he has urged holders of ETH to keep scaling the digital asset leading to a global scale.

ETH Could Be Prepared For A 2019-Style Performance

Presently, ETH is showing signs of a potential uptrend after recovering from a drop to the $2,500 level. Examining the altcoin’s price performance in the past weeks, Benjamin Cowen, a crypto analyst and the Chief Executive Officer (CEO) of Into The Cryptoverse, has predicted a possible move akin to that seen in 2019 using the 1-week timeframe.

According to the analyst, if ETH follows the 2019 pattern, it might surge to its Bull Market Support Band (BMSB) and then be rejected from the band when further information about the labor situation becomes available. The trend will possibly rekindle concerns that the Federal Reserve (Fed) may have waited too long.

However, in the event that the altcoin is not enough to gather enough momentum to rise to its bull market support band, Cowen expects ETH to first check in with the trend line indicated in his chart. This sparks the potential of ETH pegging its BMSB before falling below the trend line similar to the 2019 pattern.

Featured image from Unsplash, chart from Tradingview.com

Ethereum remains by far the largest smart contracts platform by market cap. Perched at second in the market cap leaderboard, the network hosts dapps cutting across multiple sectors.

While the Metaverse, gaming, and NFT activities have since dissipated, DeFi stands, looking at the steady recovery in total value locked (TVL), according to DeFiLlama.

DeFi Leads In Ethereum Gas Fees Generation

The dominance of DeFi in Ethereum goes on to show smart contracts and decentralized ledgers have revolutionized finance. To confirm this position, especially looking at trends in gas fees and the primary source over the years, the managing partner of DragonFly, took to X, sharing data from CoinShares.

After launching in Ethereum, CoinShares analysts note that gas fees continue to grow. There was a notable dip after the ICO mania of 2017 and 2018. The annual gas fees generated tanked from $143 million in 2018 to as low as $46 million in 2019.

However, after this contraction, which came after the crypto winter of 2018, gas fees generated exploded. The pickup in momentum coincided with the popularity of ERC-20 tokens, permitting protocols to issue tokens and the rising adoption of DeFi.

The resurgence in DeFi follows the launch of Uniswap, a decentralized exchange (DEX), in late 2018 and the introduction of the automated market maker (AMM) model, which decentralized liquidity provision. DEXs form a big part of DeFi. Some of the most popular DeFi protocols, looking at DeFiLlama, are DEXs like Curve and Uniswap.

From 2018 to 2020, the network derived its fees from ERC-20 transfers. However, as DeFi picked up steam on Ethereum in the last bull cycle from 2021, most gas fees have been from DEXs.

DEX Gas Fees Fall As ERC-20 And Stablecoin Transfers Grow, Blame Dencun?

Interestingly, gas fees from DEXs continue to fall, dropping from $2.4 billion in 2021 to $512 billion as of 2024. Meanwhile, as of September 2024, ERC-20 transfers are in second place, up from third, where it has been from 2021 to 2023. Last year alone, ERC-20 transfers, a decent portion from meme coins like PEPE and stablecoins, generated $223 million for validators.

Additionally, gas fees from layer-2s continue to slump, according to data. In 2023, Ethereum generated $247 million in fees from layer-2 platforms like Arbitrum and Optimism. According to CoinShares, it was at $90 million by the time of their publishing. The sharp drop is primarily due to the activation of Dencun.

Feature image from Canva, chart from TradingView