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In the ever-evolving world of cryptocurrency and blockchain technology, the race to build a highly scalable and user-friendly network that can be adopted globally is a never-ending marathon, and new competitors often join the race.
Bitcoin is undoubtedly the market leader in terms of network security, active users, and market capitalization, while Ethereum has become a top smart contract platform so far, but the continued difficulty of making these networks large-scale opens the door for the next generation of blockchain protocols in A firm foothold in the market.
In recent months, the fragile nature of Ethereum’s rule has begun to bear increasing pressure, as several emerging layer one and layer two protocols have launched incentive programs to attract liquidity and users into its ecosystem system.
The following are some of the emerging first-tier smart contract platforms that are vying for an increase in the share of liquidity in the crypto market.
Fantom encourages developers to migrate
Fantom is a protocol that uses a directed acyclic graph architecture to execute its consensus, and theoretically it has unlimited scalability based on this design.
In recent months, the high-speed and low-cost characteristics of the network have attracted more and more attention from participants in the encryption community, because the Ethereum network continues to suffer from high transaction costs and slower confirmation times due to network congestion.
After the announcement of a 370 million FTM incentive program on August 30 to reward developers who build new protocols on the Fantom network, activity on the network really started to increase.
According to data from Defi Llama, since the start of the FTM incentive program, the total value lock (TVL) of the Fantom agreement has increased from US$691 million to a record high of US$1.44 billion on September 9.
according to data The $1.44 billion TVL provided by the Fantom Foundation makes Fantom the fourth largest Ethereum Virtual Machine (EVM) compatible network on the market. More than 20,000 new addresses are being added and more than 1.5 million transactions are processed every day.
Several new non-fungible tokens (NFT) and decentralized finance (DeFi) protocols are being launched on the network, and this trend may continue to rise as liquidity migrates to Fantom.
Liquidity “influx” avalanche
Another network that draws liquidity from the Ethereum network is Avalanche, which is an open, programmable smart contract platform designed for decentralized applications.
The activity of the agreement has increased significantly after its launch Avalanche Rush DeFi Incentive Program On August 18, USD 180 million was used for the DeFi protocol and the liquidity of the avalanche ecosystem.
The program was initially integrated with the two top DeFi protocols Curve and Aave on the Ethereum network, but was later expanded to include other protocols, such as Sushi swap, Benqi Finance, YAY games, Caber Network with Parallel exchange.
After the incentive plan was launched, data from Defi Llama showed that the total value locked in the Avalanche agreement soared from US$311.5 million on August 18 to a record high on September 5, reaching a record high of US$2.42 billion. Then there was a correction in the market. At the time of this article, its value is $2.11 billion.
Avalanche has also launched many new DeFi and NFT agreements on the web, including a partnership with collectibles and transaction card manufacturer Topps. roll out Its “2021 Topps Major League Baseball Inception NFT Collection” on the Avalanche network.
The ongoing migration is caused by Avalanche bridge starts In June, this enabled users to transfer any asset on the Ethereum network to Avalanche at a cost of one-fifth of what was previously required to pass the bridge.
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Competitive fields become more crowded
Fantom and Avalanche are the two recent rising stars in the first tier of games. They have been attracting users from the Ethereum network, but they are far from alone.
Other EVM-compatible networks that made progress earlier this year are Binance Smart Chain and Polygon. Both networks allow users to keep their assets on the Ethereum network while avoiding the high fees of the base layer.
The biggest threat posed by EVM-incompatible chains to Ethereum comes from Solana, which has seen the largest increase in TVL in the past 7 days, followed by Terra, a protocol focused on stablecoins.
The last two notable places include self-amending blockchain protocols Tezos with Algorand, This is a purely proof-of-stake agreement.
data Data from Defi Llama shows that in the past 7 days, the TVL of each network has increased by 207% and 71%, respectively, and due to protocol upgrades, their token prices have soared to near the highest point in history. For Algorand, Passed by the Government of El Salvador.
As mentioned at the beginning and shown in the above TVL, in terms of users, protocols, and TVL, the Ethereum network is the dominant smart contract blockchain, but the limitations of the current network open the door to competitors. market share.
Will Ethereum 2.0 solve the problems it faces, or will the next-generation protocol rise and provide the best solution to the blockchain trilemma, which is to provide decentralization, security and scalability on an easy-to-use platform Sex, it remains to be seen.
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