The price of a number of smart contract platforms has been rising in the past 30 days, and blockchain analytics firm Glassnode is investigating metrics to determine if any of these platforms can compete with Ethereum (ETH) in the future. Analysis of Glassnode on altcoin projects Cryptocoin. com we have compiled for you, have a good read…

Glassnode: AVAX and Solana see massive 30-day price increase

According to CoinGecko, Avalanche (AVAX), Solana (SOL), and Terra (LUNA) paddled 292%, respectively, last month. 9, 211%. 2 and 191%. 4 gained value. Glassnode first discusses the “increase of interest” in AVAX and SOL. Glassnode has the following comments on the subject:

Alternative smart contract platforms like AVAX and Solana have seen a massive 30-day price increase as activity tips and bets on a multi-chain future start to gain attention.

Source: Glassnode

Glassnode states that popular altcoin Avalanche attracts limited liquidity until earlier this month, when it announced a $180 million DeFi incentive program in decentralized finance (DeFi) projects.

Glassnode: Projects on Avalanche attract investors through inflated returns

The Avalanche Foundation has allocated the first $27 million for users of the lending and borrowing protocol Aave and the decentralized exchange Curve (CRV). The analytics firm emphasizes that since the announcement of the incentives, liquidity in AVAX’s DeFi projects has increased by caching. However, Glassnode also says that liquidity on Avalanche remains relatively limited. Glassnode has the following comments on the subject:

Projects on Avalanche make their mark as clones of existing projects on Ethereum, attracting this growth through incentives and inflated returns that may or may not persist in the long run.

Glassnode: Growth in the Solana ecosystem is very limited compared to the leading altcoin Ethereum

According to Glassnode, popular altcoin Solana has focused on DeFi protocol implementations that drive growth in its ecosystem. Solana is also capable of processing between 50,000 and 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. Glassnode has the following comments on the subject:

There are five projects in the Solana DeFi space with more than $100 million TVL (total kilodollars value). For comparison, Ethereum has over 60 projects with more than $100 million in TVL. Solana certainly offers an attractive alternative for projects that require scaling. For now, it has barely scratched the surface in competing with Ethereum for total liquidity.

Glassnode: One of the altcoin projects trying to overtake ETH on Terra!

Glassnode says Terra “showed non-trivial signs of adoption in several selection protocols.” Terra’s largest DeFi protocol, Anchor Protocol, is worth more than $3.4 billion in total.

Like Solana and Avalanche, Terra has hosted no more than five projects with more than $100 million in liquidity, according to the analytics firm. Glassnode has the following comments on the subject:

While some alternative first-tier smart contract platforms have seen their native tokens increase in recent weeks, actual liquidity on each chain remains limited relative to the Ethereum chain.

Glassnode: If Ethereum is struggling to scale its network, projects may shift to these altcoins

Glassnode envisions a world where more users migrate to these platforms, especially if the Ethereum network is struggling to scale. Glassnode has the following comments on the subject:

As some users move to newer and more experimental blockchains, developers will have to evaluate the viability and longevity of additional users and capital flowing in and out of Ethereum. As competition, attention, and capital increase for users, many developers and protocols may find the trade-offs worth it or even find value and opportunities untapped in protocol design. And if Ethereum L2s are struggling to scale the network or are a heavy barrier to user experience, users may naturally turn to alternative chains in response.

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Michael Lewis


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