According to a new report by CoinMarketCap, the world’s largest altcoin Ethereum; Uniswap, Compound, Yearn Finance and began to lose its dominance against other DeFi competitors.
As the first smart contracts product in the digital assets industry, Ethereum has gained immense popularity since 2017 and especially in 2021. However, with the development of the industry, the number of alternative solutions in the market that offer less transaction fees, more potential and easier entry has increased.
Ethereum’s DeFi Domination Drops To 55 Percent
Compared to March 2021, Ethereum lost approximately 29% of its 84% market dominance and fell to 55%. Other DeFi ecosystems, which have some advantages over the weak points in the ETH ecosystem, gained strength in the same time period.
One of the biggest competitors of ETH, the world’s largest cryptocurrency owned by Binance BNB chain peaked at $30 billion in total locked value. At the time of this writing, there is $ 11 billion on the BNB chain.
Another one among the names that gained strength from ETH competitors was launched just before the DeFi craze in September 2020. Avalanche (AVAX) it happened. After the summer of 2021, Avalanche’s total locked value and market capitalization skyrocketed.
Finally, it was released as the “ETH killer”. wither network was at first successful in order to realize this goal. During the NFT craze, the SOL network also benefited, with ETH raising transaction fees to very high levels in response to increased user demand. SOL promised to do the same functionality with lower transaction fees.
Climbing to a market value of $78 billion at its peak, SOL lost users due to its constant interruptions and other technical problems.
*Not investment advice.