With a market capitalization of over $ 165 billion, Ethereum it is still the leading Tier 1 blockchain in the world. It is the recognized market leader in nearly all categories of blockchain systems, including NFT, DeFi, gaming, and metaverse. In its seven-year history, Ethereum has provided investors with a staggering 38,332.43% return. As a result, investors have always been looking for “the next Ethereum” that could make them crypto millionaires.
In 2022, Solana has emerged as Ethereum’s most likely challenger. However, Solana is down more than 80% for the year and investors may be ready to move forward next year with another option. So who will be Ethereum’s next big challenger in 2023? One perspective is Algorand (ALGO 0.77%)a well-known cryptocurrency within the crypto community but largely overlooked by cryptocurrency investors.
Since its official public launch in June 2019, Algorand has had a mission to create a world-class blockchain that is superior in every way to Ethereum. In terms of speed, security, scalability and overall performance, it ranks at the top of all blockchains. It is also the first “pure” proof-of-stake blockchain.
In addition, Algorand is continually receiving new updates, so he is not resting on his laurels. For example, in early September, Algorand got a major speed update. And it has also received a major new security update known as the Falcon that will make it completely impervious to quantum computing attacks in the future. Algorand is the only major blockchain that talks about post-quantum technology.
The greenest blockchain in the world
Algorand is also one of the most sustainable blockchain projects in the world. There are only a handful of blockchain projects that are generally considered “green” blockchains, and Algorand hasn’t hesitated to proclaim its credentials. On Earth Day this year, for example, Algorand blacked out electronic billboards in Times Square in New York to highlight how much energy the world’s blockchains are using.
In 2023, being faced with the issue of green sustainability could be huge for Algorand. The White House just released a major report on the energy and climate implications of cryptocurrencies, forcing investors to think about this issue. At the same time, Ethereum is playing on the fact that the transition from a proof-of-work blockchain to a proof-of-stake blockchain reduces energy consumption by 99.9%. But Algorand has taken a further step forward: it is not only carbon neutral; it is negative carbon.
But who uses Algorand?
So, given its superiority over Ethereum in all these areas, why has Algorand stayed off the radar of most casual investors? In terms of market capitalization, for example, Algorand is only in 29th place among all cryptocurrencies.
One reason could be that Algorand had a harder time than expected convincing people to use its blockchain. If you look at Total Value Locked (TVL), which is a useful metric to see how much activity is happening on a blockchain, Algorand ranks 16th among all blockchains, with a total of $ 240 million. He may be better than Cardano, but he’s only one-fifth of Solana’s TVL and one-seventh of Avalanche’s TVL.
A great end-of-year catalyst
That’s why I’m looking forward to a great catalyst for Algorand at the end of 2023: the World Cup in Qatar. This is probably one of the most watched sporting events in the world and Algorand was the first official blockchain partner in the United States of this event. Whenever you tune in to watch a football match over the holidays, you may see the Algorand logo, which could do wonders for name recognition around the world. Additionally, being an official blockchain partner of the 2022 FIFA World Cup could provide a boost to usage metrics for Algorand. For example, FIFA has announced that it will launch an NFT market for football artwork on Algorand by the end of September.
Will 2023 be the year of Algorand?
For now, I’ll take a wait-and-see approach with Algorand. While it has continually been one step ahead in areas such as quantum cryptography and blockchain environmental sustainability, Algorand has paid less attention to winning over normal everyday crypto enthusiasts who are more focused on gaming and trading than NFT.
In addition to cheering on the United States Men’s National Soccer Team, I will be cheering on Algorand in November and December. If there is a year in which Algorand could become a major cryptocurrency investment, it will be 2023. If all goes to plan, people may actually start talking about Algorand as “the next Ethereum”.
Dominic Basulto has positions in Cardano and Ethereum. The Motley Fool has positions and recommends Avalanche, Ethereum and Solana. The Motley Fool has a disclosure policy.