Ethereums DeFi Reign Challenged: Solana & USDC Rise
While Ethereum is the most preferred blockchain for DeFi protocols, emerging challenges like Solana and USDC are reshaping the landscape. Analysts dissect the quality of liquidity pools across different blockchain networks.
The crypto community is abuzz with Solanas impressive volume that has flipped all EVM chains, a closer look reveals a different story. The analysis exposes a major flaw its spread across less liquid pools. When considering volume alongside TVL, the expert suggests that Solana falls behind Ethereum and even struggles against other EVM chains.
Delving deeper, the expert, questions if Solanas volume surge is a mirage. His analysis focuses on blue chip DeFi pools, mirroring the criteria for traditional stock indexes. Established history, high liquidity, and sustained volume are the key factors.
Another strong contender might be Circles USDC whose growing role in the crypto domain has been likened to the petrodollar pact of 1974, where US dollars became the default currency for oil trade. The expert suggests that USDC could achieve similar dominance in DeFi, potentially surpassing Tethers USDT.
Interestingly, USDC appears more frequently in top-tier pools compared to USDT.
BlackRocks Entry Into Ethereum: Base DeFis Dark Horse
Despite all that, Ethereum remains the undisputed king. The expert stated that half of the top 20 New Goodness ranked pools reside on the ETH blockchain, a testament to its high TVL and sustained volumes. This might shed light on Blackrocks recent strategic move into the Ethereum ecosystem.
Another surprising takeaway is Base, a relatively new network. While they only have 5 pools, Eths Aerodrome dominates in all the pools except one, showcasing their strong presence on the network. However, Base boasts the highest volume pool overall.
Ethereum remains the king of DeFi, but Base poses a potential threat with its high-volume pool. On the other hand, Solanas volume surge originates from less liquid pools, raising questions about its long-term viability. The future of DeFi appears to be a battleground between established players and rising stars vying for dominance through robust liquidity pools.
Read more: https://www.tronweekly.com/ethereum-defi-reign-challenged/
Text source: TronWeekly
