Ethereum Will Remain The Dominant DeFi Platform: Analyst Opinion
Ethereum will remain the dominant Defi platform despite the attempts of other blockchains such as TRON and EOS of trying to catch up. Most of the total value locked into DeFi is locked in Ethereum based platforms and it seems that things are going to stay this way as per the Ethereum latest news.
The industry observers believe that Ethereum will remain the dominant Defi platform because the growth among Defi enabling blockchains will come from other network effects as well as utility and capacity. With Ethereum boasting the first-mover advantage and the rapidly growing, it will be the best place to be for DeFi. ETH is by far the most dominant blockchain according to the data from the DeFi pulse, accounting for 90% and 99% of the total value locked in DeFi platforms. Looking at the data, all of the 36 Defi platforms are based on ETH and out of the 4 billion now locked into these 36 platforms.
(1/3) JUST DeFi team will launch 3 new DeFi products: (1) “JUST Lend”- place where TRON users can earn interests or borrow assets against collateral (2) “JUST Swap-a fully decentralized on-chain protocol for token exchange (3) “JUST BTC”-a TRC20 token backed 1:1 by Bitcoin.
— Justin Sun (@justinsuntron) July 3, 2020
According to industry observers, this dominance will come not so much from ETH being superior but from it being the first platform to move and gain a decent base. According to Anndy Lian, the Singapore-based crypto advisor:
“Ethereum has the first-mover advantage, as it has had at previous times in crypto history, from taking the lead in ICOs [initial coin offerings] and smart contracts and now DeFi.”
Anndy Lian, a #Singapore-based cryptoasset advisor and author: “#Ethereum has the first-mover advantage, as it has had at previous times in crypto history, from taking the lead in ICOs and smart contracts and now #DeFi.” #Tron #EOS @Blockcastcc https://t.co/mTO2AkcRD8
— Anndy Lian #Blockchain #Crypto #ABC (@anndylian) August 2, 2020
Lian noted that Ethereum has the biggest market cap in crypto and is one of the best testing platforms for the industry so if it cannot make Defi work, no one can. A spokesperson for the Maker Foundation said that Ethereum’s current success lies with the fact that it was able to build upon the activity on the blockchain which attracts even more users and more activity:
“Scope, size and amount of activity on Ethereum are critical factors driving the DeFi ecosystem.”
The Maker Foundation spokesperson suggested that other blockchains that can interoperate with the build on top of ETH have the chance of expanding their market share:
“Chains that can easily integrate or build across Ethereum should be able to take advantage of that activity and grow with it by providing scale for DeFi apps.”
The market shares of EOS and TRON will go upwards in the upcoming months as per the EOS newsletter and Anndy Lian isn’t sure how fast this growth will be:
“The market share is starting to spread but it will be slow. Ethereum will take the lead till 2021 on DeFi while the rest are playing catch up.”