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In the ever-evolving world of cryptocurrency and blockchain technology, the race to create an easy-to-use, scalable and scalable network on a global scale is a never-ending marathon as new competitors regularly participate in the race.
Bitcoin is undoubtedly a market leader when it comes to network security, active users and market cap value, while Ethereum has so far established itself as the best smart contract platform, but the continued difficulty in scaling these networks has opened the door to the next – blockchain protocols in order to obtain a foothold in the market.
The fragile nature of the Ethereum era has come under increasing pressure in recent months as several Layer 1 and Layer 2 based protocols have launched incentive programs to attract liquidity and users into their ecosystems.
Here is a look at some of the rising tier 1 smart contract platforms vying for a growing share of liquidity in the cryptocurrency market.
Fantom encourages developers to migrate
Fantom is a protocol that uses a vectored acyclic graph architecture to perform its consensus and is, in theory, infinitely scalable based on this design.
The high-speed and low-cost nature of the network has gained increasing attention from participants in the crypto community in recent months as the Ethereum network continues to suffer from high transaction costs and slow confirmation times due to network congestion.
Activity on the network really started to pick up after the August 30 announcement of a 370 million FTM incentive program aimed at rewarding developers who build new protocols on the Fantom Network.
In the time since the launch of the FTM incentive program, the total locked-in value (TVL) on the Fantom protocol has risen from $691 million to a new record high of $1.44 billion on September 9, based on data from Devi Lama.
according to data Provided by the Fantom Foundation, the $1.44 billion TVL value makes Fantom the fourth largest Ethereum Virtual Machine (EVM) compatible network on the market and currently adds more than 20,000 new addresses and processes more than 1.5 million transactions on a daily basis.
Several new non-fungible tokens (NFTs) and decentralized finance (DeFi) protocols are being launched on the network, and this trend is likely to continue to rise as liquidity moves to Fantom.
Liquidity “rushes” to the avalanche
Another network that has been draining liquidity from the Ethereun network is Avalanche, an open and programmable smart contract platform designed specifically for decentralized applications.
Protocol activity saw a spike following the launch on August 18 of the Avalanche Rush DeFi Incentive Program, which earmarked $180 million for DeFi protocols and liquidity for the Avalanche ecosystem.
The program was initially integrated with Curve and Aave, two of the best DeFi protocols on the Ethereum network, but has since expanded to include other protocols, such as Swap sushibank finance YAY gamesAnd keper network And ParaSwap.
Following the launch of the stimulus program, data from Davey Lama shows that the total value confined to the avalanche protocol rose from $311.5 million on August 18 to an all-time high of $2.42 billion on September 5 before the market-wide decline eased. It is worth $2.11 billion at the time of writing.
The avalanche also saw the launch of a number of new DeFi and NFT protocols on the network, including a partnership with debit and card maker Topps, which Launched “2021 Topps Major League Baseball Inception NFT” set on Avalanche Network.
Continuous migration was made possible with the launch of the Avalanche Bridge in June, enabling users to move any asset on the Ethereum network to Avalanche at one-fifth of the previously required cost via the bridge.
Related: As Bitcoin debuts in El Salvador, Honduras and Guatemala are studying CBDCs
The competition field is getting crowded
Fantom and Avalanche are two of the most recent rising stars of the first tier game that has been capturing users from the Ethereum network, but they are far from isolated.
Other EVM-compliant networks that made headway earlier this year are Binance Smart Chain and Polygon. Both networks allow users to keep their assets on the Ethereum network while avoiding high fees on the base layer.
The biggest threat to Ethereum comes from Solana’s non-EVM-compliant chain, which has seen the biggest gains in TVL over the past seven days, followed by the stablecoin-focused Terra protocol.
Among the recent notable mentions is the Tezos and Algorand self-modifying blockchain protocol, which is a pure proof-of-stake protocol.
Data from Defi Llama shows that TVL per network has increased by 207% and 71%, respectively, over the past seven days, while token prices have risen near all-time highs thanks to protocol upgrades and, in the case of Algorand, adoption by the El Salvador government.
As mentioned in the beginning and explained in the TVL figure above, the Ethereum network is the dominant smart contract block in terms of users, protocols and TVL, but the network’s current limitations leave the door open for competitors to get rid of it. market share.
It remains to be seen if Ethereum 2.0 will solve the problems you are facing or if the next generation protocol will rise to the top and offer the perfect solution to the triple-blockchain to provide decentralization, security, and scalability on one easy-to-use platform.
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