This question is not really answered, but it is pointed out that the crypto winter may slow down investment in alternative Layer 1s, and that Web3 may become a winning market again with Ethereum as the dominant player. “If Ethereum’s entrenched status as the number two blockchain behind Bitcoin is already allowing Ethereum to fend off competitors, it seems especially unlikely that another smart contract-enabled blockchain will challenge it should these changes prove successful”.Īt this point a second question arises: if these new alternative layer 1 blockchains are unable to truly challenge Ethereum, will they survive? In addition, the future move to PoS, and other Layer 2-based solutions, could help greatly in reducing the cost of gas. The competitive advantage of the Ethereum ecosystem.Įthereum still appears to be far ahead in terms of, for example, overall daily transaction volume, including in the so-called Web3 and NFT field. People generally use the term “Ethereum-killer” to identify these alternative blockchains that could overtake ETH, but so far none have been able to do so. The peer-to-peer lending platform enables borrowers and lenders to agree on the loan terms that are then executed using smart contracts. The question Chainalysis is asking is whether any of these will be able to overtake Ethereum in terms of mass adoption. Aave, formerly known as ETHLend, is an Ethereum-powered, decentralized peer-to-peer marketplace for borrowing and lending digital assets. For the most part, these new blockchains have presented themselves as alternatives to solve Ethereum’s very problems with scalability, and especially with the high cost of fees. The report reveals that several new layer 1 blockchains that have emerged lately have grown to gain a role in the growing Web3 ecosystem. Of this amount, nearly 64% is locked on the Ethereum blockchain.ĭespite a higher average transaction cost, Ethereum remains by far the preferred layer 1 blockchain for users of decentralized finance protocols. ĭeFiLlama now has as many as 124 blockchains, with over $74 billion in TVL (Total Value Locked). Knowing the best DeFi coin to invest in 2021 requires up-to-date understanding of the demand/supply pullwhich is often determined by intrinsic and extrinsic factors like world politics, perception, coin stability, and more. Indeed, in the past many new layer 1 blockchains have claimed to want to compete with Ethereum, but as yet none have succeeded, especially in the DeFi arena. The cryptocurrency market continues to evolve, with interesting competition amongst the various DeFi coins. To be fair, layer 2 blockchains, such as those that are themselves based on Ethereum, are also increasing, but in theory it is only the layer 1 ones that could really compete with Ethereum. The competitive advantage of the Ethereum ecosystem.Įthereum-killers are not yet having a significant impact on the entire DeFi industry The chart shows that interest in blockchains like Algorand is growing.Ethereum-killers are not yet having a significant impact on the entire DeFi industry.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |