Blockchain data provider CryptoCompare has identified the altcoin that emerged as the strongest threat to Ethereum (ETH) in the decentralized financial landscape in Q1 2022 (Q1).
In a new report, CryptoCompare reports that Ethereum is experiencing stagnant growth in locked total value (TVL). The crypto market data provider said that fierce competition from Ethereum’s competitors is one of the reasons behind the sluggish growth of the second-largest digital asset by market cap.
“Ethereum continued to dominate (currently at 55.6%) despite sluggish growth with the current $150 billion TVL (20.8% down from the end of Q4 2021). This recession can be attributed in part to the poor performance of crypto assets during the quarter, as well as fierce competition among alternative layer1 protocols.”
CryptoCompare said that Terra (LUNA), a blockchain protocol primarily focused on hosting algorithmic stablecoins, was the most successful crypto project in capturing Ethereum in Q1 2022.
“Terra, for example, has emerged as a successful competitor to Ethereum in the last three months, continuing the Solunavax narrative from 2021, raising $35.2 billion with a TVL growth of more than 72.0% quarter-on-quarter.”
Solunavax stands for the trio of leading Ethereum competitors – Solana (SOL), LUNA and Avalanche (AVAX).
According to the cryptocurrency market data provider, the growth in Terra’s TVL can be attributed to the attractive returns of fixed income platform Anchor Protocol. Staking Terra’s flagship stablecoin UST on Anchor Protocol currently yields a 19.46% annual return.
Ranked eighth by market cap, Terra is trading at $98.39 at the time of writing.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.