TL;DR Breakdown
CryptoCompare labeled Terra as Ethereum’s biggest competitor.The causes of Ethereum’s stagnant growth are attributed to stiff competition from its rival blockchains.
Since it was launched in 2015, Ethereum has existed as a decentralized blockchain platform. It supports and serves as a base network for several smart contracts designed for different functions.
However, the second-largest blockchain dominance in DeFi has in recent days been threatened by the emergence of stiff competition from its rivals in the market. According to a statement by CryptoCompare, an independent cryptocurrency information provider globally, Ethereum is experiencing a big threat barely four months after the beginning of 2022.
Ethereum stagnant growth
According to a statement released by the crypto data provider, Ethereum has been experiencing stagnant growth lately. The weakening growth has been greatly noted especially in the total value locked (TVL). Crypto assets staked on the network haven’t noted any significant growth as well as other incentives compared to other blockchains.
CryptoCompare attributes the unchanging growth to the stiff competition from other blockchains, especially Terra.
Despite the TVL currently reading at $150 billion which is a drop of 20.8% compared to the 2021 record, Ethereum still maintains its dominance. It is worth noting that the unchanging growth is not only a result of ETH competitors but also the unsatisfactory performance of the crypto assets for the better part of this year. Additionally, there exists fierce competition among the alternative layer1 protocols.
ETH vs LUNA
According to CryptoCompare, the emergence and new trend of Terra (LUNA) have successfully posed more threats to the ETH blockchain. The blockchain network was developed in South Korea by Terra labs. Terra is mainly aimed at supporting algorithmic stablecoins.
Terra has challenged the second-largest blockchain for the last three months with a record of up to 72.0% TVL growth which is $35.2bn. This moves echoes the continued Ethereum competitors who are abbreviated as Solunavax since 2021. The three competitors are; Solana (SOL), LUNA as well as Avalanche (AVAX).
The prevailing success of Terra, according to CryptoCompare, can be linked to its attractive yields on Anchor Protocol, its yields platform. Through its yields platform, Terra now attracts up to 19.46% yields per year.
