How do ALGO, SOL, ATOM compete with ETH?

Although ETH is the second largest cryptocurrency by market capitalization, it cannot avoid competing fairly in the market. In addition, DeFi and the smart contract functionality of many chains and protocols are exploding, making them a formidable competitor.

In terms of investment returns, however, ETH is currently still the leader. Does any of these 3 altcoins have the potential to compete with it?

Better returns than ETH?

At least with the books. Over the past 24 hours, Sharpe ratio analysis of various tokens has produced some interesting results. ATOM, SOL, and ALGO all promise better than other major assets, including ETH.

Many factors contribute to their surprising growth, from investor engagement to recent developments.

Profit risk based on Sharpe. ratio

ALGO is a very attractive asset for many traders. Three days ago the network reached 13.5 million registered addresses. What is surprising is that it reached 13 million addresses at the beginning of the month alone.

Growth of the ALGO. Addresses | The source: Algorand

The reason for this extraordinary growth is likely to lie news The government of El Salvador is building infrastructure on Algorand.

“The government of El Salvador has signed an agreement with Koibanx to develop the country’s blockchain infrastructure on Algorand.”

On the other hand, the DeFi sector on Solana continues to grow. In less than a month, TVL nearly tripled, reaching $ 9.1 billion.

Thanks to its low volatility, this altcoin has also seen a significant increase in demand. Purchase orders range from 2 million to 11 million SOL daily.

Trading volume SOL | The source: Coinlyze

Last month was Cosmos notification DeFi begins to enter the network through a cross-chain gateway. Unsurprisingly, ATOM’s price rose nearly 91% in less than a month after that. Although ATOM is currently trading at $ 37.1, ATOM hit a new all-time high in September of $ 44.7.

ATOM increased by 91% | Source: TradingView

Should You Invest?

Although ALGO, SOL, ATOM have positive network performance and are highly profitable, their price volatility is not guaranteed to always increase. Their correlation with Bitcoin is also a bit poor – ALGO at 0.57, ATOM at 0.6, and SOL at 0.67.

However, all 3 networks have grown continuously and have seen some significant increases this month.

Development activities | Source: Santiment

With metrics like the ones above, the final decision is yours and always do your own research before making any investments.

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