As DeFi takes off, Ethereum's rivals are catching up
Editor's Note: This article comes fromCointelegraph Chinese (ID: CointelegraphChina)Editor's Note: This article comes from
Cointelegraph Chinese (ID: CointelegraphChina)
, Author: GARETH JENKINSON, reprinted with authorization by Odaily.ExceedEthereum isn’t the only blockchain platform seeing significant growth in value as the decentralized finance (DeFi) space continues to grow in tandem with the burgeoning cryptocurrency ecosystem. The DeFi space has continued to perform well in the new year, as is evident from the enormous value flowing into various platforms.
Exceedaccording to$27 billion, due in part to an increase in the value of most cryptocurrencies. However, adoption and development in this space has been growing in recent months.
according to
According to DeFi Pulse, Uniswap is the largest automated market maker, which runs on Ethereum, and the rest of the top 10 DeFi projects also run on this blockchain network.
Although the growth and success of DeFi platforms has put pressure on the Ethereum network’s ability to process transactions and increased transaction fees, these platforms have brought huge locked-in value to the Ethereum ecosystem. Having said that, some of Ethereum’s market competitors have enjoyed great success in early 2021, suggesting that there are more players driving the DeFi space.
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Polkadot, Chainlink, and Near Protocol have all made great progressPolkadot is seen as one of Ethereum's most prominent competitors. It is a new generation blockchain that connects private and public blockchains and networks. Initiated by the Web3 Foundation, the project hopes to drive interoperability between blockchains and power future decentralized networks.Polkadot essentially uses what it calls "parachains" to run a multichain protocol that allows other blockchains to connect to its network as sidechains. The protocol also has the ability to process thousands of transactions per second, making it an ethereum competitor in the eyes of some commentators. Polkadot has seen huge growth in 2021, with the price of its DOT token nearly doubling since entering the new year.Near Protocol is another smart contract blockchain platform that has gained popularity since its launch in April 2020. Its native token, NEAR,。
Recent value added more than 100%Ada. The project operates on its Proof-of-Stake protocol using sharding, and Ethereum this yearBCHStill trying to give Near ProtocolCardano, which runs on its own proof-of-stake blockchain, has also seen some growth. its native tokenHas surpassed Bitcoin Cash (
The sixth largest cryptocurrency by market capitalizationOracle network. The platform has yet to launch a powerful smart contract, but is expected to do so this year, which would allow DeFi platforms to build on the protocol.
Chainlink also made the list for its role in the smart contract blockchain and DeFi space. Chainlink is a decentralizedOracle network。
, as an intermediary network that provides data to smart contracts on different blockchains. According to the project, Chainlink has become a major tool in the DeFi space as it provides tamper-proof, high-quality price data for various DeFi protocols.As Chainlink continues to enjoy the indirect effects of DeFi success, the network's native tokenThe term "great repricing"
Widely used in the DeFi field
, as the native tokens of popular platforms Synthetix and Aave also broke into the top 20 cryptocurrency market cap rankings in early 2021. Synthetix Network Token (SNX) and AAVE have grown considerably in value, with a combined market capitalization of over $3.5 billion. SNX is the native token of Synthetix, a derivatives liquidity protocol, while Aave is a liquidity protocol that allows users to deposit and borrow various crypto assets. Both Synthetix and Aave run on the Ethereum blockchain.
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Ethereum altchain has a lot of room to grow
The DeFi space is clearly an emerging one, with plenty of room for more than one blockchain to support the plethora of applications and products that have been developed over the past year. Dan Reecer, director of Polkadot growth at the Web3 Foundation, admitted that Ethereum is currently the blockchain network with the largest total locked value in DeFi.
However, that doesn’t mean users are reluctant to try alternatives, according to Reecer: “There are clear signs of a proliferation of DeFi platforms built on blockchains other than Ethereum, with DeFi, cryptocurrencies and blockchain Chains in general are evolving towards multi-chain.” He also emphasized that the transition to a multi-chain DeFi ecosystem will become a necessity in the future, given how centralized mainstream applications and networks currently operate:
“Compared to traditional technologies, all of our most commonly used applications, such as Instagram and LinkedIn, use various major database systems. These databases can work seamlessly with other channels and protocols of the Internet. In order to make DeFi and encryption For the currency to be adopted at scale by users of all ages, we need to build a multi-chain infrastructure that can all run in sync. Most importantly, users will not know what underlying protocol or blockchain they are using. "
Bette Chen, co-founder and chief operating officer of decentralized finance “hub” Acala, told Cointelegraph that the DeFi space is still in its infancy, averaging only 4,000 to 5,000 daily active addresses.
However, Chen believes that the emergence of new smart contract blockchains is a positive development trend in the DeFi field: "We don't think it's a competitive situation, but we are in the very early stages of a disruptive new technology. , the future evolution to multi-chain will promote DeFi growth and mass adoption in the market." She went on to add that multi-chain may be "a hybrid of CeFi and DeFi products, helping to deliver real value and user experience to end users."
