Capital migration from Ethereum to Solana and Fantom

Capital migration from Ethereum to Solana and Fantom

Ethereum’s competitors and Layer 1 projects are raising the price of tokens by launching mining and incentives for developers, and are using Ethereum’s high-risk gas to take advantage of liquidity migration.

In a growing world of digital currencies and blockchain technology, the competition to build a highly scalable, user-friendly network that can be deployed globally is a never-ending marathon in which new competitors compete on a regular basis, according to Kevin Telegraph. They work together.

Bitcoin is undoubtedly a leader in network security, active users and market value. While Ethereum has established itself as the largest blockchain to support smart contracts, it has opened the door to ongoing scalability problems for the next generation of blockchain protocols to gain a foothold in the market.

Ethereum’s dominance in recent months and its dominance of the market has come under increasing pressure as several Layer 1 and Layer 2 protocols have launched various incentive programs to attract users and migrate liquidity to their ecosystem.

In this post, we are going to take a look at some of the growing Layer 1 platforms that support smart contracts and compete to increase their share of market liquidity. These projects have broken their price record in recent weeks.

Fantom encourages developers to migrate

Fantom is a protocol that uses a non-rotating graph architecture to guide its consensus, and according to this design, it is theoretically infinitely scalable.

The fast and low-cost nature of the network has come to the attention of users of the cryptocurrency community in recent months as the Ethereum network continues to struggle with high fees and slow transaction approval.

Fantom network activity has increased since the Aug. 30 announcement of a $ 370 million incentive program to reward developers who develop new protocols on the Fantom network platform.

Total Locked Value (TVL) in the Phantom Protocol

According to Defi Llama, since the launch of this incentive program, the total locked value (TVL) of the Fantom Protocol has increased from $ 691 million to a record $ 1.44 billion on September 9th.

According to data provided by the Fantom Foundation, the total locked value of $ 1.44 billion has made the Fantom the fourth largest network of Ethereum Virtual Machine (EVM) on the market, with more than 20,000 new addresses added daily. The network is expanding to process more than 1.5 million transactions.

Several new non-exchangeable tokens (NFT) protocols and decentralized financial ecosystems have been launched on the Fantom platform, and this trend may continue as cash flows into the network.

At the time of writing, the Fantom (FTM) is priced at $ 1.49. The Fantom hit a record high of $ 1.92 two days ago.

Liquidity is rapidly migrating to Avalanche

Avalanche is another network that is rapidly attracting cash from the Ethereum network. A smart text-to-play contract platform designed specifically for decentralized applications.

Following the Rush DeFi Avalanche incentive program on August 18, in which $ 180 million was allocated to the ecosystem’s defense and liquidity protocols, activity under the protocol has increased significantly.

The program first integrated with Curve and Aave, the top two Defy protocols in the Ethereum network, but has since expanded to include SushiSwap, Benqi Finance, YAY Games, Kyber Network and ParaSwap.

After launching the incentive program, Defi Llama data show that the total value locked in the Avalanche Protocol increased from $ 311.5 million on August 18 to a peak of $ 2.42 billion on September 5, before the market price correction. The total value locked into the protocol at the time of writing was $ 2.11 billion.

Total value locked in the Avalanche protocol

Also, several new Difai and NFT protocols have been launched on the Avalanche platform. One of these protocols is Avalanche’s partnership with Topps business card maker, which launched the Topps Major League Baseball Inception series on the Avalanche network.

Continued migration of users was made possible by the launch of the Avalanche Bridge in June. A bridge that allows users to transfer their Ethereum assets to Avalanche for one-fifth of the previous fee.

The competition is getting tougher

Fantom and Avalanche are two new Layer 1 stars that have attracted users. However, they are not the only competing networks of Ethereum .

Binance Smart China and Paligan are other compatible networks (Ethereum EVM Virtual Machine) that made significant progress earlier this year. Both networks allow users to keep their assets in the Ethereum network and at the same time avoid high fees in the main layer.

Top 7 China Blockchain protocols based on total locked value

The biggest threat to Ethereum from EVM-incompatible chains is felt by Solana, which has seen the largest increase in total locked value in the past seven days, followed by the Stable QuinnTra protocol.

In addition to Solana, two blockchains, Tzus and Algrand, have emerged, which are two protocols based on the stock consensus mechanism.

According to Defi Llama, the total value of locks on both networks has increased by 207% and 71%, respectively, over the past seven days. However, the price of their tokens has reached near its peak due to the upgrade of the protocol and, in relation to Algrand, due to its acceptance by the El Salvador government.

As noted above, the Ethereum network is the market leader in terms of number of users, protocols, and total locked blockchain value, but current network constraints have left the door open for competitors to increase their market share.

It remains to be seen whether Ethereum 2.0 will solve the problems ahead, or whether next-generation protocols will culminate in liquidity migration and provide an optimal solution including decentralization, security, and scalability in an easy-to-use platform for easy blockchain technology. .

Luna record-breaking

The LUNA token of the Terra protocol exceeded $ 22.95 on September 7, turning the previous resistance into a support level, which is a positive sign. The price of Luna on September 9 rose above its 20-day moving average on the level of $ 30.63, which indicates a strong buy at the bottom of the price.

Luna’s oversupply these days pushed the price of LUNA to a high of $ 36.89. This indicates strong demand at higher levels. The 20-day moving average has risen and the RSI has reached 68, indicating that the market cows have returned strongly.

If buyers can keep the price above the current level, the LUNA / USDT currency pair can resume its uptrend and the next target will be the local blockchain code $ 50. Otherwise, the price can fall to a 20-day moving average.

Source cointelegraph

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