Can These Surging Altcoins Compete With Ethereum? Glassnode Analyzes Three Growing Platforms
A slew of smart contract platforms have been surging in price over the past 30 days, and blockchain analytics firm Glassnode is digging into the metrics to determine whether or not any of these platforms can compete with Ethereum (ETH) in the future.
Avalanche (AVAX), Solana (SOL), and Terra (LUNA) have all exploded over the past month, gaining 292.9%, 212.2%, and 191.4% in value, respectively, according to CoinGecko.
Glassnode notes that Avalanche had attracted limited liquidity across its decentralized finance (DeFi) projects until earlier this month when it announced a $180 million DeFi incentive program.
The Avalanche Foundation allocated the first $27 million for users of lending and borrowing protocol Aave and decentralized exchange Curve (CRV). The analytics firm highlights the exponential rise of liquidity in AVAX’s DeFi projects since the incentives were announced.
Solana has focused on DeFi protocol implementations, which have driven growth in its ecosystem, according to Glassnode. Solana also has a processing capacity of between 50,000 to 65,000 transactions per second, which allows the network to scale.
Still, growth in the Solana ecosystem is very limited compared to Ethereum, according to the analytics firm.
Terra has demonstrated “non-trivial signs of adoption in a few choice protocols,” says Glassnode. Anchor Protocol, Terra’s largest DeFi protocol, has more than $3.4 billion in total value locked.
Like Solana and Avalanche, Terra has yet to host more than five projects with more than $100 million in liquidity, according to the analytics firm.
Glassnode sees a world in which more users are migrating to these platforms, particularly if Ethereum struggles to scale its network.
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