Ethereum (ETH 3.37%) is the second largest crypto-the world currency in terms of market value and is changing the way of doing business. In fact, decentralized applications (dApps) on the blockchain help users do everything from managing their finances to collecting works of art. This popular cryptocurrency has shot up more than 500% in the last three years.

I am optimistic about the future of Ethereum. But two cryptocurrencies could overtake this crypto giant. I am talking about smaller and younger players, Cardano (ADA 6.23%) and Avalanche (AVAX 0.00%). This is why…

1.Cardano

The main problems with Ethereum are its transaction speed and high cost. It is in the middle of an update aimed at fixing these issues. Also read: Is this sublisted crypto a more profitable asset than Solana (SOL) and Ethereum Classic (ETC)?. But Cardano is already faster and is on its way to being even faster.

But first, a little background on this cryptocurrency. One of the co-founders of Ethereum, Charles Hoskinson, is also the founder of Cardano. This means that there is a lot of experience and knowledge behind this new player. Cardano has a native token called “ada” and it is a blockchain.

This cryptocurrency reached a major milestone last fall with the launch of smart contract functionality. This means that dApps can be built on the blockchain. And that’s a good sign: more and more money is pouring into these projects on Cardano. Total value locked is up 14% since the beginning of the month to around $136.93 million now, according to Defi Llama.

Now back to speed. Cardano software engineers are working on the hydra head scaling solution. Each head is an off-chain network that allows a transaction to occur. The idea is to increase the number of transactions on Cardano by making a large number of them on these headers. According to early estimates, each head processes 1,000 transactions per second. It is possible that Hydra could start rolling out as soon as this year.

2. Avalanche

Like Cardano, Avalanche has a native token, called Avax, and it is a blockchain. Avalanche is also a winner when it comes to speed. Also read: Here’s why Solana, Cardano and Avalanche prices are up today. Transactions on Avalanche complete in less than two seconds. By comparison, it can take up to six minutes on Ethereum.

And while Ethereum processes around 14 transactions per second, Avalanche can process an unlimited number. This is made possible by Avalanche’s subnets, or stand-alone networks. Developers can build them for specific projects.

The rest of Avalanche’s structure also promotes speed and efficiency. Avalanche actually consists of three blockchains with different functions such as asset creation, validator coordination, and smart contract management. The main network coordinates the three blockchains and the subnets.

Next, it is important to note that this blockchain is compatible with its great rival, Ethereum, making it easy for those who rely on Ethereum to build and operate on Avalanche. Developers can launch Ethereum dApps directly on Avalanche. They can easily transfer assets using the Avalanche Bridge.

Currently, there are more than 200 projects in Avalanche. They range from decentralized finance to games and art.

According to a report by Electric Capital, Avalanche is growing faster than Ethereum at the same point in its history, when it comes to developers using the network. The growth in the number of developers using the network is a sign of strength.

Cardano, Avalanche and Ethereum

Cardano and Avalanche are winners in terms of speed and users. In terms of stock performance, these players and Ethereum have suffered lately. This may interest you: 2 cryptocurrencies to consider to “buy the dip” and make long-term profits. Year-to-date, Cardano and Avalanche have lost 62% and 75%, respectively. Ethereum is down 58%.

All three have what it takes to bounce back and rise to prominence in the cryptocurrency market. With the strengths I mentioned above, Cardano and Avalanche could outperform their great rival in the cryptocurrency market recovery and beyond.