ETC Group advises holding Ethereum, Solana, and Aptos through market shifts ⋅ Crypto World Echo
Etc Group advised investors to hold Ethereum (Eth), Solana (Sol), and aptos (Apt) Due to their strategic importance in the layer-1 blockchain space on one October 8 Report.
While facing Ethereum mounting competition from newer blockchains, the report highlights the importance of reviewing recent market conditions and long-term performance.
Ethereum faces challenges
According to the report, Ethereum's underperformance in the third quarter was driven by three major factors, the main one was Dencun update, which significantly lowered gas fees to boost the effectiveness of layer-2 networks.
This led to a fall on the transaction fees and network activity in Ethereum Mainnet, which negatively affects the user's sentiment about the network.
In addition, the market crash in early August caused by the Japanese Yen -carrying trading resulting resulting in deleveraging throughout the market, that ETH was one of the most affected.
The report noted that the lack of performance of the Spot Ethereum ETFS also contributed to the subpar performance of the quarter, which was the weak area exchanged by ETF flows. Due to their launch, Spot Ethereum ETF has registered a negative net flow of $ 546 million, based on Farside Investor Data.
Despite these setbacks, the group's review suggests that Ethereum looks elastic when viewing the year-to-date, maintaining a 101 performance index compared to 128 and Aptos '78.
The report calculates network dominance using the Comprehensive Network Dominance Index (CNDI), which combines metrics such as excellence in network use (NUE) and Economic Density Index (EDI).
Based on its findings, Ethereum remains the most dominant network, with a 45% of the market, followed by Solana with 35% and aptos with 20%. The report that linked the Ethereum market leadership to the well-established ecosystem and consistent contact of the user, which has strengthened a long-term position despite growing competition.
Solana, growth of aptos
According to the report, Solana has shown a sustainable ability to attract users and developers based on bridged net flow growth, which hits $ 1 billion in the third quarter.
This makes it a charming -attraction to hold for investors because its trajectory growth is likely to continue with a bull scenario. However, it added that Solana's dominance may have been challenged in the coming months as the aptos gain momentum, which can relieve some of its growth growth.
Despite the relatively small market shares, Aptos showed promise as a competitor in the layer-1 space, with 23% higher developer activity than the average of other networks. The network has capitalized on its success in the blockchain gaming sector and has shown a strong ability to handle high volume transactions at low cost.
However, the report noted that the Aptos faced barriers to the developer's adoption due to the relatively new language transfer language, which has not yet gained widespread support. In contrast, Solana's use of rust offers mature tooling and infrastructure, giving it an edge.
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