Telos (TLOS) is one of the most high-performing and fastest blockchains according to Blocktivity data. However, it had one of the lowest market caps at just under $55 million with each TLOS token trading at around $0.20 at the 22nth of August 2021. At the time of writing, this is already multiplied by 5 and is now over $250 million with each token trading around $1,07.
Quite often in the blockchain and crypto space, projects attain super-high valuations through paid “influencer” marketing, excessive and unjustifiable hype, as well as seemingly promising narratives that never really materialize. It’s been my experience that very few projects in the crypto space actually focus on fundamentals.
Lots of Hype, Few or No Meaningful Use-Cases
Only a few years back, the EOS mainnet went live after its developers at Block. one raised a record-breaking $4.1 billion via a highly questionable initial coin offering (ICO). Although Block. one paid a $24 million fine to the US Securities and Exchange Commission (SEC), while also dealing with other legal issues, the EOS blockchain is still running but with hardly any meaningful use-cases or even a decent user-base.
Dan Larimer, the former CTO at Block. one, left his role with the firm earlier this year. Meanwhile, their CEO Brendan Blumer has been openly boasting about their Bitcoin (BTC) holdings instead of focusing on many promised projects like social media platform Voice – which has pretty much failed.
Another project, TRON (TRX), which also saw its mainnet go live back in 2018, hasn’t really lived up to expectations either. Tron founder Justin Sun has become well-known in the crypto space for creating excessive hype, but then not really delivering on any of their commitments.
Other large-cap coins like Cardano (ADA) have supposedly been under development since 2015, however, they really have very little to show for in terms of real progress. For instance, Cardano can’t even effectively support smart contracts, yet it still has one of the highest market caps (not really justifiable).
As explained by Douglas Horn, the Chief Architect at Telos, and CEO at GoodBlock, nearly all smart contract platforms are basically running a slightly modified version of Ethereum’s (ETH) codebase. These platforms are supposed to make it easier and more accessible for software architects to implement permissionless, open-source applications.
Can Ethereum Deliver on Its Promises?
Even though hundreds or even thousands of projects have been launched with the goal of providing a better version of Ethereum, they’ve not really been able to capture a meaningful market share. Ethereum (ETH) also benefits from its enormous network effects and the largest developer community in the world. For these reasons, among others, Ethereum is set to maintain its dominance over the smart contract development ecosystem, for now at least.
But that doesn’t mean that Ethereum will be able to deliver on all its promises. At present, the leading smart contract platform is in the process of transitioning from proof of work-based consensus to a proof of stake or POS-enabled consensus protocol. Recently, the London fork and Ethereum Improvement Proposal or EIP-1559 was successfully activated.
Without going into too many details, it’s worth noting that the latest Ethereum upgrade has been fairly well-received and the community is quite excited about the fee-burning mechanism that has truly made Ethereum deflationary.
Ethereum (ETH) is currently trading at over $3,000 with its market cap swelling well above the $300 billion mark. Notably, the entire cryptocurrency market cap, with Bitcoin included, was around $300-$350 billion just a couple years back.
However, Ethereum development has been criticized for being centralized and led or influenced by a relatively small group of developers and individuals like Ethereum co-founders Vitalik Buterin and Joseph Lubin. Centralization of a cryptocurrency project can be problematic because development and services become tailored to suit the interests of a small group of stakeholders, while not catering to the larger community – which crypto was really meant to serve.
Telos May Have a Superior Value Proposition
So what’s driving these sky-high valuations? Is it purely the fundamentals? Are these valuations supported by legitimate technology and solutions that provide meaningful use-cases or applications?
To some extent, yes. But there are currently many other projects with arguably better functionality and the ability to truly develop decentralized, uncensorable, and fast applications that can support enterprise-grade use-cases.
Telos is definitely one such project that has come a long way due to the sincere commitment of its community along with a group of highly skilled developers who have masterfully created a set of software tools to enable smart contract applications with extremely high performance and robust security.
Telos has been specifically developed for optimal speed, greater scalability, price point, maximum energy efficiency, and governance. These attributes arguably make Telos the ideal network for mainstream adoption of distributed ledger technology and digital assets.