Ethereum’s share of market dominance continues to outpace its competitors due to investors' use of derivatives, its status as the chain of choice in NFT markets and the networks’ increasing decentralization. noshitcoins explains.
Consequently, it is safe to say that Ethereum is far less centralized in terms of development and validation in comparison to Tron, BNB Chain and Solana.on June 19 are: derivatives activity and Ethereum’s dominance of the NFT marketEther’s future contracts are essential for institutional trading practices like hedging and trading with leverage. Ether’s cash-settled futures were added to the Chicago Mercantile Exchange in February 2021.
In futures markets, longs and shorts are balanced at all times, but having a larger number of active contracts — open interest — allows the participation of institutional investors who require a minimum market size. Ether futures aggregated open interest stands at $5.4 billion, while competitors BNB hold $380 million and Solana a mere $178 million.Nonfungible tokens are a perfect example of how cheaper and faster transactions do not always translate to increased adoption.
Ultimately, the data favors Ethereum versus the competing smart contract-focused blockchains. The positive trend in Ether’s dominance might fade over time if the promised upgrade to allow parallel processing does not come to fruition, but for now, Ether’s 20% market capitalization share remains unchallenged.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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