The Race for the Blockchain Leadership | Analysis
By now, many people across the globe have heard about Bitcoin. Some more interested individuals are also aware of Ethereum, which is equipped with the technology to allow third parties to build their own tokens on top (through smart contracts).
But quite few know that there are many more blockchains out there, with and without support for 3rd party applications. In this article, we will analyse their market penetration and limit ourselves to the ones that do allow for 3rd party applications — just like the LT Blockchain.
Looking at the tokens with market caps above $5 Million, we see that there are 312 tokens spread across 10 different blockchains. Those are Ethereum, Stellar, NEO, Waves, TRON, NEM, Ardor, EOS, Qtum and BitShares.
For our analysis, we will disregard the degree of decentralization of each blockchain. We only want to obtain their economic relevance within the industry.
Let’s look into the data.
“Token Count” refers to the count of tokens that surpass a market cap of $5 Million.
“Token Market Cap” is the sum of the market caps of all relevant tokens (above $5 Million valuation) built on the blockchain. For example BNB or LOC.
“Blockchain Market Cap” is the market cap of the underlying coin of the blockchain. For example ETH or NEO.
“Value Ratio” is Blockchain Market Cap/Token Market Cap and therefore shows the hype factor. For EOS, every $ in token market cap translates to $281 in EOS market cap.
Ethereum has the clear leadership with 281 tokens and a combined token valuation of more than $12,5 Billion. Followed by a huge gap, we see TRON at the second place with a $135 Million token valuation, albeit having only a single relevant project in the race.
- Ethereum dominates the industry by a factor of 100
- Alternative blockchains have only managed to grow a few selected projects into relevant sizes
- There is a lot of space for new blockchains
- The ability for Ethereum tokens to easily migrate to the LT blockchain bares itself a huge potential (LT blockchain supports the Ethereum Virtual Machine)
- On-boarding even a few relevant projects can quickly catapult any blockchain into the runner-up position right after Ethereum
- The Market Caps of the blockchains do not correlate with the amount of relevant tokens and/or with the combined market cap of those tokens. This might be an indication that the industry is still searching for viable options and has not settled on solutions.
The LT Blockchain
We at LockTrip have put a lot of thought into the key characteristics of our blockchain. With its unique selling points and the ability to easily adopt to change, it is designed for the end game.
The data above shows clearly that most of the projects have opted for the industry standard Ethereum. Diversification into alternatives is yet to happen, which we expect to be a key milestone for the maturing phase of the industry. Our goal is it therefore to capture this potential by offering a strong value proposition through our business targeting features.
Evedo will be the first project adopting the LT blockchain. They are currently preparing to conduct their Initial Exchange Offering (IEO) on April 16th on Bitforex, which will happen on the Ethereum blockchain. As soon as the mainnet of the LT blockchain is ready, they will be migrating from Ethereum to LT (read here).
FFQuest is another candidate to join the LT ecosystem. They will be holding their token event later this year. We are in close relationship with their team and both of our Co-Founders (Hristo and Nikola) have joined their advisory board.
We will update our community about the progress on that front. Many great things are lying ahead and we are very excited to grow the LockTrip ecosystem beyond our own project.
LockTrip is the first marketplace with 0% commission where you can save on average 20% on your hotel and rental bookings compared to anywhere else. Read how to buy LOC tokens here!