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According to the latest report from CoinMarketCap, Ethereum is in the process of losing dominance over other DeFi competitors such as Uniswap, Compound, Yearn Finance, and others.
Ethereum was the first smart contract in the digital asset industry, and in 2017 it went through many cycles of popularity, the last of which was in 2021. The project allows developers to create decentralized solutions and monetize them in various ways. But with the development of the industry, more alternative solutions appeared on the market that offered lower fees, greater potential and easier entry.
Source: CoinMarketCap
In early May, Ethereum had already lost nearly 30% of its market dominance compared to March 2021, while other platforms have seen rapid growth in their DeFi ecosystems mainly due to its superiority over Ethereum.
Binance BNB has been one of the ether’s main competitors, as it made more than $30 billion in TVL at its peak and now reports about $11 billion worth of funds blocked in contracts.
Another representative of EVM-compatible networks was Avalanche, launched right before the DeFi craze in September 2020. After the summer of 2021, TVL and Avalanche’s market cap have skyrocketed.
Last but not least, the Solana network was conceived as an “Ethereum killer,” and early in its journey, it succeeded. During the NFT craze, Ethereum’s inability to keep up with user demand led to ridiculously high fees on the network, which played a role in favor of Solana, which offered the same functionality at a lower “price.”
At the peak of its development, Solana reported a market capitalization of $ 78 billion, but due to constant downtime and other technical problems, users left the network forever, leaving it with a capitalization of $ 17 billion.
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