This surprising crypto could become the next major Ethereum challenger in 2023

With a market capitalization of over $165 billion, Ethereum still stands as the leading Layer 1 blockchain in the world. It is the recognized market leader in just about every category of blockchain systems, including NFTs, DeFi, gaming and the metaverse. Over its seven-year history, Ethereum has given investors a staggering return of 38,332.43%. As a result, investors have always searched for “the next Ethereum” that can turn them into crypto millionaires.

In 2022, Solana emerged as the most likely Ethereum challenger. However, Solana is down more than 80% for the year, and investors may be ready to move on next year with another option. So what will be the next big Ethereum challenger in 2023? One prospect is Algorand (ALGO 0.80%)a crypto that is well known in the crypto community, but largely overlooked among cryptocurrency investors.

Login information from the top shelf

Ever since its official public launch in June 2019, Algorand has been on a mission to create a world-class blockchain that is superior to Ethereum in every way. In terms of speed, security, scalability and overall performance, it ranks near the top of all blockchains. It is also the first ever “pure” proof-of-stake blockchain.

Image source: Getty Images.

Also, Algorand is constantly getting new upgrades, so it’s not resting on its laurels. For example, in early September, Algorand received a major speed upgrade. And it also received a major new security upgrade known as Falcon that will make it completely impervious to quantum data attacks in the future. Algorand is the only major blockchain that talks about post-quantum technology.

The world’s greenest blockchain

Algorand is also one of the world’s most sustainable blockchain projects. There are only a handful of blockchain projects that are generally considered to be “green” blockchains, and Algorand has not been shy about proclaiming their credentials. On Earth Day this year, for example, Algorand answered the electronic billboards in New York’s Times Square to highlight how much energy the world’s blockchains use.

In 2023, it could be big for Algorand to be at the forefront of the green sustainability issue. The White House just released a major report on the energy and climate implications of crypto, forcing investors to think about this issue. At the same time, Ethereum plays up that a transition from proof-of-work to proof-of-stake blockchain reduces energy consumption by 99.9%. But Algorand has gone one step further: It is not only carbon neutral; it is carbon negative.

But who uses Algorand?

So, given its superiority to Ethereum in all these areas, why has Algorand remained off the radar of most casual investors? In terms of market capitalization, for example, Algorand only ranks #29 among all cryptos.

One reason may be that Algorand has had a harder time than expected getting people to use the blockchain. If you look at Total Value Locked (TVL), which is a useful metric to see how much activity is happening on a blockchain, Algorand ranks #16 among all blockchains, with a total of $240 million. It may be better than Cardano, but it’s only a fifth of the TVL of Solana and a seventh of the TVL of Avalanche.

A great catalyst for the end of the year

That is why I look forward to a big catalyst for Algorand coming at the end of 2023: the World Cup in Qatar. This is arguably one of the most watched sporting events in the world, and Algorand was the first official US blockchain partner for this event. Every time you watch a soccer game during the holidays, you might see the Algorand logo, which can do wonders for name recognition around the world. Also, being an official blockchain partner for the 2022 FIFA World Cup could boost Algorand usage metrics. For example, FIFA has announced that it will launch an NFT marketplace for football art on Algorand by the end of September.

Will 2023 be the year for Algorand?

For now, I’m taking a wait-and-see approach with Algorand. Although it has always been one step ahead in areas such as quantum cryptography and blockchain environmental sustainability, Algorand has placed less emphasis on winning over ordinary, everyday crypto-enthusiasts who are more focused on playing games and trading NFTs.

In addition to rooting for the US men’s soccer team, I will be cheering for Algorand in November and December. If there’s any year Algorand could become a breakout crypto investment, it would be 2023. If all goes according to plan, people might actually start talking about Algorand as “the next Ethereum.”