Ethereum, which debuted in 2015, initially provided a platform on which developers could build decentralized apps (DApps), conduct initial coin offerings (ICOs) and write smart contracts. Many saw it as being the successor to Bitcoin (BTC).
According to Bloomberg, developers are now opting for other platforms like EOS and Stellar. In January, only 28 percent of DApps users were on the Ethereum network, while the EOS network saw 48 percent and Tron accounted for 24 percent.
Co-founder of hedge fund Multicoin Capital Management Kyle Samani said “The simple reality is that until the last six-to-nine months, there were no other options besides Ethereum. Now there are."
Ikigai crypto hedge fund founder Travis Kling said, “Owning Ethereum today is a call option on what you think the network is going to be in the future. To the extent that Ethereum competitor projects get traction with developers, with users, with DApps built on top of the platform, that will be viewed by the market as being detrimental to the overall value of Ethereum, and that can have a negative price impact on Ether."
Others say that Ethereum’s block speed of roughly 13 seconds is beginning to lag behind other networks, which can purportedly confirm transactions in under a second.
Bloomberg notes that the majority of token offerings are still reportedly conducted on the Ethereum network, and that its dedicated base of developers will keep it competitive. A member of the Ethereum Foundation reportedly said:
“The thing that really shines about Ethereum is its vibrant community. Everyone keeps building and supporting the cause regardless of the markets. All of the recent progress on Plasma and Serenity (Eth2) really speak to that. ”
Earlier this weekend, Ethereum co-founder and prominent face in the crypto community Vitalik Buterin argued that the crypto community should evolve beyond the individualism associated with its early cypherpunk days.