You can crossfade materials using only the texture tag. Drag your first material onto the object, click on the texture tag, and keyframe the “Material” parameter. Then move the timeline ahead and drag your second material into the “Material” slot and keyframe again.
You’ll see the material pop from one to the other in the editor, but if you render you’ll see that it’s a smooth transition. The only thing about it is that there’s access to the f-curve, so you don’t get a lot of control.