Key Points
Despite Ethereum’s 70% gains in 2024, it has been outperformed by other cryptocurrencies.
Emerging L1 networks like Graphite are gaining traction due to their superior speed, cost efficiency, and trust-based blockchain ecosystem.
Ethereum’s Performance in 2024
As 2024 nears its end, Ethereum’s year-to-date gain is over 70%.
This lags behind Bitcoin and Solana, which have seen increases of 142% and 107% respectively.
Bitcoin holds investor interest due to its deflationary structure and reputation as a store of value.
Meanwhile, Solana’s speed and cost-efficiency make it the preferred choice for DeFi and NFT developers.
Bitcoin’s appeal lies in its fixed supply and regulated inflation mechanisms.
These provide security, stability, and predictability.
On the other hand, Ethereum has experienced challenges with its net issuance due to reduced gas fee burns.
Research from CoinShares shows that the growth of layer-2 solutions like Arbitrum and Optimism has shifted activity away from Ethereum’s core layer-1 network.
This has significantly decreased ETH supply burns, undermining Ethereum’s deflationary model.
Other L1s, particularly Solana, have advanced with faster transaction speeds and lower costs.
This has attracted a larger user base.
As of October, Solana had 138 million monthly active wallets, a 245% increase since August.
Simultaneously, Solana’s total value locked saw significant gains, capturing 2.7% of Ethereum’s TVL inflows year-to-date.
In contrast, Ethereum experienced net outflows of $6 billion in 2024.
Graphite: An Emerging Ethereum Alternative
Beyond Solana, Graphite is another emerging Ethereum alternative.
It has recently launched its proprietary L1 blockchain platform.
Graphite’s platform can handle high transaction volumes with a capacity of up to 1,400 transactions per second.
It also offers confirmation times of less than 10 seconds.
This performance significantly outperforms Ethereum’s limited transaction speeds.
Graphite’s transaction model maintains a clear fee rate.
This allows users to predict their expenses upfront and avoid Ethereum’s “gas bidding wars”.
Graphite’s Ethereum-compatible virtual machines simplify the transition of Solidity smart contracts onto the network.
This allows developers to scale their existing decentralized applications without the resources required to build on blockchains like Solana.
Graphite uses a Proof-of-Authority (PoA) consensus model and the Polymer 2.0 algorithm.
This relies on a network of trusted, authorized nodes for validating blocks.
Graphite’s transaction model provides a passive income opportunity for entry-point (transport) nodes.
This sets it apart from other blockchains, where only resource-intensive validator nodes earn rewards.
Graphite is pioneering a reputation-based approach within the blockchain space.
It bridges traditional finance with the core mechanics of web3.
Graphite’s account activation feature enforces a “One User, One Account” policy.
This prevents the creation of multiple disposable wallets, which are often linked to fraudulent behavior.
Graphite’s Trust Score system assigns a credibility rating to each account.
This ensures a secure and trustworthy network environment.
Graphite prioritizes both privacy and reputation by using Zero Knowledge Proof technology.
This verifies data for decentralized applications without exposing the data itself.
Graphite’s KYC requirements are designed to be less intrusive than those in traditional finance.
This allows blockchain users to maintain a level of anonymity that aligns with their expectations.
Graphite will also implement tagged addresses, which allow users to label wallets linked to specific entities.
This ensures proper fund usage while making any misuse instantly detectable on the blockchain.
Graphite’s smart ticker system appends the @G symbol to all coins integrated with its blockchain.
This provides a seamless method for network identification and promoting ecosystem clarity.
Ethereum’s current challenges are part of a broader evolution in the blockchain industry.
Other L1 networks like Graphite are creating new entry points for mass audiences.
Graphite Network addresses Ethereum’s scalability and cost limitations and creates a trust-driven, user-centric blockchain environment.
