Ethereum is the largest and most important smart contract platform and is also the market leader in the field of decentralized financial products (DeFi). However, Ethereum threatens great competition in this growth market. We introduce the platforms that can deliver strong competition to Ethereum at DeFi in 2022.
1. Ethereum competitors at DeFi - Solana (SOL)
Solana was one of the top newcomers in the field of cryptocurrencies in 2021. The network impresses with its proof-of-history consensus mechanism, which allows extremely fast transactions, which greatly increases the scalability of the network. Of course, the Solana Blockchain is very attractive for new projects in the DeFi area.
Only recently, Serum, a decentralized exchange on the Solana Blockchain, has already collected 70 million of the planned 100 million dollars in donations for DeFi projects. Due to its technical requirements, Solana is an excellent network to compete with Ethereum at DeFi.
2. Terra (LUNA)
Terra has been a big talking point in the crypto market for the past few weeks. The Terra network uses FIAT-backed stablecoins to create a decentralized payment network with stable prices. This makes Terra, as a competitor to Ethereum, an extremely popular network for projects in the DeFi area.
Recently, Terra became the second largest platform for DeFi. After “total value locked” (TVL), Terra is currently the second largest DeFi platform after Ethereum. A total of 13 projects bring with them over 18.2 billion dollars in value. Since December 2020 this number has increased by 42,000%. With an average of 1.4 billion dollars per project, particularly large projects are located on Terra.
3. Avalanche (AVAX)
Another extremely successful newcomer in the DeFi area is Avalanche, which should also compete with Ethereum in the DeFi area in 2022. By using several parallel blockchains, transactions on Avalanche are much faster and cheaper than on the current Ethereum blockchain.
In the last few weeks, the Avalanche ecosystem has grown at record speed and more and more projects in the DeFi area are relying on the Avalanche network. You see Avalanche at DeFi as a cheaper alternative to the Ethereum network. Furthermore, developer activity in the Avalanche network has increased massively in the last few weeks.
Ethereum dominates among developers, but competitors are growing faster
According to the crypto research firm Electric Capital Polkadot, Solana, NEAR, BSC, Avalanche, and Terra are growing faster than Ethereum did at similar points in its history. They published a new report compared to monthly active developers between December 2020 and December 2021.
Solana, BSC, Avalanche, Terra and NEAR attracting more developers as her adoption slightly increases. The monthly active contributors grew by around 64% and more than 500 developers.
Whats is your secret ETH competitor? Let me know in the comments
