When Bitcoin (CRYPTO:BTC) was created, it undoubtedly began a revolution. However, the creation of Ethereum (CRYPTO:ETH) was arguably an even bigger development. It was the start of blockchain networks that can run smart contracts. The implications for the long-term potential of blockchain technology are huge.
This is essentially why Ethereum has so much potential and why it’s already the second-most valuable cryptocurrency. And in recent years it has rewarded investors with some significant returns. Tonnes of development have been taking place on the most popular blockchains, such as Ethereum.
Over the last two years, Bitcoin earned investors growth of 307% in 2020 and 62% in 2021. The price of ETH grew by 496% and 386% in each of those two years. So that’s not just incredible growth, it’s also clearly outperforming Bitcoin. And now, Ethereum accounts for almost 20% of the total value of all cryptocurrencies.
The cryptocurrency still offers tonnes of growth potential, especially over the long run. However, most of the massive growth is behind it. Furthermore, at the moment, it has several issues that need addressing.
What are the issues Ethereum faces today?
Currently, there are a handful of significant issues that Ethereum faces, which is limiting its ability to scale up. This is to be expected, though, given Ethereum was the first blockchain of its kind.
Given its popularity, a cotinuing problem is that the network gets congested. As a result, the time it takes for transactions to be sent can be quite significant. The cost can be significant as well. These issues, as well as others, are being worked on right now. The should be resolved with the launch of Ethereum 2.0, expected later this year.
However, while solutions are coming, current investors and users of the crypto space, especially in DeFi, are looking for alternatives.
So, while Ethereum has potential, it also has issues. There are other cryptocurrencies that are also much cheaper and have more room to grow significantly.
One of the best cryptocurrencies to buy in 2022
Ethereum is already the most popular option. And many in the space have the confidence that Ethereum 2.0 can solve a lot of issues. This means choosing to invest in a blockchain that’s compatible with Ethereum is an excellent long-term option.
Many users and, more importantly, developers don’t want to migrate to an entirely new chain. This means tonnes of blockchains in Ethereum’s ecosystem offer huge potential. At the end of the day, where the users and developers go will play the biggest role in which cryptocurrencies have the most demand and gain the most in value.
That’s why a cryptocurrency such as Fantom (CRYPTO:FTM) is one of the best to buy in 2022. It’s compatible with Ethereum, , of course, but it’s also much more efficient at the moment. Transactions often cost just cents to make.
One of the reasons why transactions are so cheap is that its underlying technology was originally built to offer better scaling than Ethereum. And because it’s compatible with Ethereum, tonnes of users and developers have easily migrated to Fantom, giving it a significant boost to popularity.
While many in the cryptocurrency industry are optimistic about Ethereum’s upgrade this year, nobody wants to wait around for it to be released. And right now, using Ethereum’s network can be costly, difficult, and frustrating. Therefore, solutions like Fantom continue to be a no-brainer for users in the space.
At the time of writing, Fantom is now the 27th most valuable cryptocurrency with a market cap just shy of US$7 billion. In addition, its market cap to total value locked ratio sits at just 0.95 times.
Therefore, not only does Fantom offer a tonne of growth potential, but it’s also extremely cheap, making it one of the best cryptocurrencies to buy in 2022.