July 14, 2022 (Investorideas.com Newswire) Ethereum’s domination of the Defi space is evident in the latest CryptoMonday data presentation. The site has shown that in Q2 2022, Ethereum accounted for 69% of all Defi protocols built. This represents an 11% increase from Q1 2022, when Ethereum’s Defi dominance stood at 58%.
Jonathan Merry, CryptoMonday’s CEO, attributes the platform’s dominance to its pioneering moves in the Defi space. He holds, “Ethereum’s dominance in the Defi space is largely due to its first-mover advantage. It was the first blockchain platform to launch decentralized applications (dApps) that have since caught on. The growing popularity of these dApps has cemented Ethereum’s dominance of the Defi market.”
Ethereum’s Total Value Locked Has Continued Falling
Ethereum’s TVL has been declining recently, from a peak of $74B in Q1 2021 to $48B in Q2 2021. That represents a significant drop of 63% in QoQ terms. Following this decline, some analysts question whether Ethereum can maintain its position as the leading smart contract platform.
So what’s behind this decline?
Firstly, the overall crypto market is experiencing a correction after a period of explosive growth. Secondly, there is increased competition from other blockchains. Finally, there are issues with Ethereum’s scalability and high gas fees.
Ethereum’s developers are aware of the network’s shortcomings and are working on solving them. One way they’re doing that is by transitioning it from the current Proof of Work consensus mechanism to a Proof of Stake one.
How did Ethereum’s Competition Fare?
Although Ethereum maintains a healthy lead over its competitors, its market share has declined. Once the only platform within Defi, it has seen its absolute control slowly ebbing.
Binance Smart Chain takes the second spot in terms of market dominance within the Defi space. The network’s TVL is currently at $6B, which is an 8% market share. This is down from 20% in Q1 2021. Binance Smart Chain’s drop in market dominance can be attributed to increased competition from other networks. Other networks also playing an important role in Defi development include Polygon, Solana, and Avalanche. Full story and statistics can be found here: Ethereum Dominance of the Defi Space Grows by 11% in Q2’2022
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