Does the future of DeFi still belong to the Ethereum blockchain?
Ethereum is a decentralized finance giant that has seen significant growth over the past few years, spurred on by events like “DeFi Summer” and the rise of nonfungible tokens (NFTs).
Ethereum’s popularity, however, may be leading to its downfall, as other protocols look to eat away at or completely consume its market position.
Bitcoin (BTC) is the mother of all blockchains and was the first modern iteration of what is widely known today as cryptocurrency. Since then, there have been numerous attempts to provide users greater functionality, but most have not had the staying power. One that has risen to the challenge is Ethereum, with its native Ether (ETH) coin now the second-largest cryptocurrency by market capitalization.
Cointelegraph Research has released a 74-page report that does a deep dive into Ethereum’s rise to this position, starting off by examining Bitcoin alongside Ethereum’s history and where it is today. Ethereum provided users with a way to create smart contracts in a way Bitcoin could not, which helped propel Ethereum to its current status as the leading blockchain for DeFi. It’s clear that Bitcoin is here to stay, and there have been advancements in its DeFi capabilities — mostly utilizing layer-2 solutions to help scalability, such as Lightning Network, Portal and DeFiChain. However, Ethereum is still out in front of Bitcoin in the DeFi space, but can it stay there?
Ethereum saw unprecedented adoption in 2021, peaking at 800,000 daily active users in November. It has real-life adoption use cases, with a total value locked of over $150 billion across DeFi applications running on the blockchain in 2021. Some of the services offered by decentralized applications on Ethereum include lending, derivatives,
Read more on cointelegraph.com
