The world of DeFi ruled by Ethereum is a relatively new space when you look at the crypto space. The Ethereum blockchain has hosted a multitude of Dapps and NFT platforms that have earned it top rank.
But with the emergence of multiple L1 and L2 scaling solutions, some blockchains are looking to overthrow the ETH rule.
STEALING ETHEREUM ?!
Both Fantom and Avalanche recently launched incentive programs to reward developers who build on the networks. Since then, the total blocked value (TVL) in both chains increased significantly.
While, at the same time, Ethereum’s TVL dropped by almost $ 30 billion. There is a good chance that Fantom and Avalanche have attracted users and liquidity, as both chains are compatible with Ethereum Virtual Machine (EVM).
From Fantom’s ad, its TVL has gone from $ 755 million to $ 1.34 billion.
The network has been growing at a rapid rate and more people are joining it. Active addresses on Fantom peaked at 3,200 when their average used to be around 200. Additionally, transaction volumes reached $ 633 million, as daily transactions reached 1.7 million.
Similarly, Avalanche also launched a $ 180 million incentive program. This was done to provide liquidity and support to companies such as AAVE and Curve, which had initially launched onto the network. Now, you also have Sushiswap and Paraswap on the list.
Avalanche’s TVL since then increased by 676%, from $ 311 million to $ 2.41 billion. Its compatibility with EVM allows a faster and 5 times cheaper transfer of ETH assets to AVAX. This may have incentivized many people to switch to Avalanche, which boasts a transaction speed of 10,000 transactions per second.
And their prices?
The price of its tokens saw significant growth, as FTM has risen 163% since then. Similarly, AVAX is up 164%, in fact 70% in the last 4 days alone.
However, given FTM’s 56% dominance of whales, it seems like a riskier asset, susceptible to whale dumping. But since both currencies have risen so significantly, their high volatility also puts them on the path of corrections.
Therefore, investors should make sure to do their research before making investment decisions.
This is a machine translation of our English version.