ETC Group advises holding Ethereum, Solana, and Aptos through market shifts

ETC Group advised investors to clasp Ethereum (ETH), Solana (SOL), and Aptos (APT) owed to their strategical value successful the layer-1 blockchain abstraction successful an Oct. 8 report.

As Ethereum faces mounting contention from newer blockchains, the study highlighted the value of evaluating the market’s caller conditions and semipermanent performance.

Ethereum faces challenges

According to the report, Ethereum’s underperformance successful the 3rd 4th was driven by 3 main factors, the main 1 being the Dencun update, which importantly lowered state fees to boost the effectiveness of layer-2 networks.

This led to a autumn successful transaction fees and web enactment connected the Ethereum mainnet, which has negatively impacted idiosyncratic sentiment astir the network.

Additionally, the marketplace clang successful aboriginal August caused by the unwinding of the Japanese Yen transportation commercialized resulted successful deleveraging crossed the market, with ETH being 1 of the astir affected.

The study noted that the lackluster show of spot Ethereum ETFs has besides contributed to the quarter’s subpar performance, which is the anemic spot exchange-traded funds (ETF) flows. Since their launch, spot Ethereum ETFs registered antagonistic nett flows of $546 million, based connected Farside Investors data.

Despite these setbacks, ETC Group’s investigation suggested that Ethereum looks resilient erstwhile viewed year-to-date, maintaining a show scale of 101 compared to Solana’s 128 and Aptos’ 78.

The study calculated web dominance utilizing the Comprehensive Network Dominance Index (CNDI), which combines metrics specified arsenic Network Utilization Efficiency (NUE) and Economic Density Index (EDI).

Based connected its findings, Ethereum remains the astir ascendant network, with a 45% marketplace share, followed by Solana with 35% and Aptos with 20%. The study attributed Ethereum’s enduring marketplace enactment to its well-established ecosystem and accordant idiosyncratic engagement, which person reinforced its semipermanent presumption contempt increasing competition.

Solana, Aptos growth

According to the report, Solana has demonstrated a sustainable quality to pull users and developers based connected its bridged nett travel growth, which deed $1 cardinal during the 3rd quarter.

This makes it an charismatic plus to clasp for investors arsenic its maturation trajectory is apt to proceed successful a bull scenario. However, it added that Solana’s dominance whitethorn beryllium challenged successful the coming months arsenic Aptos gains momentum, which could dampen immoderate of its maturation projections.

Despite the comparatively tiny marketplace share, Aptos has shown committedness arsenic a rival successful the layer-1 space, with 23% higher developer enactment than the mean of different networks. The web has capitalized connected its occurrence successful the blockchain gaming assemblage and showcased a beardown capableness to grip precocious transaction volumes efficiently astatine debased costs.

However, the study noted that Aptos faces hurdles successful developer adoption owed to the comparatively caller Move programming language, which has yet to summation wide support. In contrast, Solana’s usage of Rust offers mature tooling and infrastructure, giving it an edge.

The station ETC Group advises holding Ethereum, Solana, and Aptos done marketplace shifts appeared archetypal connected CryptoSlate.