Monolithic Blockchains Surge in September Performance

Monolithic Blockchains Show Strong Performance in September 2023

According to a recent report by Cointelegraph, there has been a noticeable shift in the blockchain landscape, with monolithic blockchains making remarkable gains throughout September. VanEck's Crypto Monthly Recap shed light on significant advancements in several key players, notably Solana (SOL), Sui (SUI), and Aptos (APT), which experienced impressive price increases of 14%, 118%, and 23%, respectively.

Sui's Standout Performance

Sui's exceptional rise can be attributed to an astounding 140% surge in daily active addresses during September. This increase propelled its market capitalization to surpass $5 billion, demonstrating strong investor confidence in its capabilities. Additionally, VanEck's report highlighted Aptos' recent Raptr software upgrade as a pivotal factor behind a 30% month-over-month growth in daily active addresses.

The Advantages of Monolithic Blockchains

Often referred to as 'Ethereum killers', monolithic blockchains are recognized for their superior throughput relative to modular blockchains. This efficiency stems from their streamlined architecture, which allows for enhanced processing capabilities. Earlier in 2024, Pantera Capital drew a parallel between Solana and MacOS, emphasizing Solana's vertically integrated protocol as akin to Apple's in-house approach to software and hardware development.

Cost-Efficiency and Versatility of Blockchain Applications

The allure of higher throughput and reduced transaction costs makes blockchains like Solana and Sui particularly appealing for various applications including smaller payments, asset tokenization, and minting of non-fungible tokens (NFTs). A recent report published by Sygnum Bank underscores Solana's potential as a burgeoning payment network, positioning it as a competitor challenging Ethereum's longstanding dominance in the blockchain domain.

Impact on Ethereum's Market Position

VanEck's earlier findings indicated how the emergence of newer layer-1 competitors is gradually undermining Ethereum's market share by providing lower fees and faster transaction times. The shift has led to speculation among users as they migrate from Ethereum to more cost-effective blockchains.

This migration trend has negatively impacted Ethereum's price performance, with the digital asset experiencing a 12% decline from October 1 to October 3, 2024. Moreover, Ethereum has been trading below its 200-day exponential moving average (EMA) since August, indicating a concerning trend for this leading cryptocurrency.

Conclusion

The blockchain landscape is rapidly evolving, with monolithic blockchains like Solana, Sui, and Aptos showing exceptional performance capabilities. As users increasingly migrate towards these efficient alternatives, it raises questions about the long-term sustainability of Ethereum's market position and highlights the pressing need for adaptation within the cryptocurrency space.

For further insights into the latest cryptocurrency trends and market updates, stay tuned for more comprehensive reports and analyses.