4 ‘Bitcoin Contenders’ With Zero Use Cases and Barely Any Infrastructure

Cryptocurrency markets and the industry are extremely competitive and many users believe a single digital asset will reign someday, and that it may not be BTC. Over the last few years, many holders believe the assets they hold are Bitcoin contenders with coins like IOTA, EOS, ADA, XRP, and XLM being popular choices. However many of these cryptocurrencies see very little use and have seen their price values slashed enough to make any holder cringe.

Also Read: Market Update: Bitcoin Cash Shines as Crypto Markets Show Bullish Signals

Four So-Called ‘Bitcoin Contenders’

Recently the entire digital currency market capitalization has gained billions of dollars and a great number of people believe an “altcoin season” could happen before the next great bull run. There are definitely people who believe certain coins are BTC contenders. But belief is one thing and numbers often tell a different story as certain digital asset hopefuls are barely being used or have zero products.

The ones that are being used are significantly centralized, have frozen accounts, are plagued with bots and are still down more than 80% since their all-time price highs. Today we’re going to look at four specific digital currencies and see how they stack up to BTC’s market price and onchain performance. IOTA, EOS, ADA, and XLM have been hailed as Bitcoin contenders in the past and data explains how they have been doing recently.

4 'Bitcoin Contenders' With Zero Use Cases and Hardly Any Infrastructure
A brief look at IOTA, EOS, ADA, and XLM social benchmarks, price, controversies, and onchain performance.

IOTA — Down 94% From Its All-Time High

IOTA or MIOTA is a “transactional settlement and data transfer layer” aimed at tackling the Internet of Things (IoT). According to the white paper, the system uses a new type of distributed ledger technology called “Tangle.” Developers call the system revolutionary compared to traditional blockchains thanks to introducing new consensus mechanisms. However, the chain has had a myriad of issues including halting for 15 hours during the last week of December 2019.

4 'Bitcoin Contenders' With Zero Use Cases and Hardly Any Infrastructure
IOTA is trading for $0.33 per token on Wednesday, February 5, 2020.

At press time, IOTA is worth $0.33 per coin and the value is up 30% this year but it’s down 50% against BTC. IOTA reached an all-time high (ATH) of $5.69 per coin 779 days ago and it’s down 94% since that point. The digital asset has around $29 million in daily trade volume compared to BTC’s $5.6 billion in 24-hour trade volume. The IOTA Reddit community has around 113,000 subscribers and 122,000 Twitter followers. The crypto economics benchmark from Coindesk gives IOTA 6.74%, which is lower than usual in comparison to most other cryptos.

4 'Bitcoin Contenders' With Zero Use Cases and Hardly Any Infrastructure
IOTA community’s social ranking.

Right now lots of people take issue with the downtime and centralization tied to the IOTA Foundation and the current direction of the project. IOTA community member social media posts show they are infighting frequently and IOTA leaders are battling as well. The 24-hour transaction data for IOTA is not something recorded on most data sites including Coin Metrics and bitinfocharts.com.

EOS — Down 80% From Its All-Time High

EOS or the EOSIO platform is another form of distributed ledger technology that was supposed to outpace BTC in the eyes of a few EOS believers. The EOSIO platform was released by the private company Block.one and today EOS is the seventh-largest blockchain by market cap. On February 5, 2020, a single EOS is trading for $4.49 and there is $701 million in reported 24-hour global trade volume. At today’s market prices EOS is down 80% from its ATH of $22.89 per coin.

4 'Bitcoin Contenders' With Zero Use Cases and Hardly Any Infrastructure
EOS is trading for $4.49 per token on Wednesday, February 5, 2020.

As far as transactions per day are concerned, EOS has processed 1.7 million transactions in the last 24-hours according to Coin Metrics data. BTC has consistently held a rough average of 300,000 transactions per day since June. Despite the fact that 1.7 million per day is a lot more than BTC’s daily transaction output, skeptics estimate a great sum of EOS transactions are misleading and done by bots. Anchain.ai, an artificial intelligence security company published a report in the summer of 2019 that said a good majority of transaction volume stems from “malicious bot activity” on dapps (decentralized apps) and exchanges.

4 'Bitcoin Contenders' With Zero Use Cases and Hardly Any Infrastructure
EOS community’s social ranking.

EOS is accused of the significant centralization of block producers and these entities have been scrutinized for “freezing” accounts. A great majority of block producers stem from China as well. The firm Whiteblock published a report that described the EOS chain as nothing more than a “cloud service for computation.” The EOS Reddit community has around 69,000 subscribers and the project has about 1,400 Twitter followers. This gives the project a social benchmark of around 4.4% according to crypto-economics data.

4 'Bitcoin Contenders' With Zero Use Cases and Hardly Any Infrastructure
EOS transactions per day (black) compared to BTC transactions per day (red.)

XLM — Down 92% From Its…

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