Ethereum’s 70% Gain in 2024 Falls Behind Other Leading Cryptocurrencies

As the year 2024 comes to a close, Ethereum’s year-to-date gain of over 70% significantly lags behind other leading cryptocurrencies like Bitcoin and Solana, which rose by 142% and 107%, respectively. Bitcoin continues to dominate investor interest due to its robust deflationary structure and reputation as an efficient store of value. In contrast, Solana’s technical advantages, particularly its speed and cost-efficiency, make it the go-to choice for developers in the DeFi and NFT sectors.

Why is Ethereum Underperforming in 2024?

Ethereum faces challenges with its net issuance due to a significant reduction in gas fee burns. The growth of layer-2 solutions like Arbitrum and Optimism has diverted significant activity away from Ethereum’s core layer-1 network, drastically decreasing ETH supply burns and undermining Ethereum’s once-praised deflationary model. Additionally, other L1s, particularly Solana, have surged ahead with faster transaction speeds and reduced costs, attracting a growing user base.

Emerging L1 Networks: Graphite Offers Faster Speeds and Lower Costs

Graphite Network has introduced its proprietary L1 blockchain platform, designed to handle high transaction volumes with a capacity of up to 1,400 transactions per second and confirmation times of less than 10 seconds. This performance significantly surpasses Ethereum’s limited transaction speeds, which hover around 15-20 tps. Graphite’s transaction model also maintains a clear fee rate, allowing users to predict their expenses upfront and avoid scenarios similar to Ethereum’s “gas bidding wars” during block sealing.

Graphite’s Key Features

Graphite utilizes a Proof-of-Authority (PoA) consensus model and the Polymer 2.0 algorithm, relying on a network of trusted, authorized nodes for validating blocks. This approach dramatically improves operational efficiency by minimizing the energy and computational requirements typically associated with traditional Proof-of-Work systems.

  • Passive income opportunity for entry-point (transport) nodes, with 50% of the transaction fees processed through their nodes going to transport node operators.
  • Ethereum-compatible virtual machines simplify the transition of Solidity smart contracts onto the network.
  • Account activation feature enforces a “One User, One Account” policy, preventing the creation of multiple disposable wallets.
  • Multi-layered KYC verification helps individuals and businesses balance privacy needs with the requirement for transparency.
  • KYC transaction filters enable users to apply KYC-based transaction filters, giving them control over who they interact with.
  • Trust Score system assigns a credibility rating to each account, ensuring a secure and trustworthy network environment.

Graphite prioritizes both privacy and reputation by leveraging Zero Knowledge Proof technology to verify data for decentralized applications without exposing the data itself while keeping all KYC processes off-chain.

A New Era of Trust in Blockchain

Graphite Network addresses not only Ethereum’s scalability and cost limitations but also creates a trust-driven, user-centric blockchain environment. As the blockchain industry continues to evolve, Graphite and other L1 networks are creating new entry points for mass audiences.

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