“The truth is, that’s all Ethereum wants to be in the future – partitioning, security layer for L2s, etc. – the new chains already offer similar solutions in a more elegant way …”
She further said: “It is difficult to see a scenario in which Ethereum overtakes competing solutions.” This is something that the recent Arcane Research report also highlights. The latest report noted that ETH outperformed BTC in 2021, but other Layer 1 networks like Solana outperformed ETH.
With this, Arcane Research predicts that in 2022 there will be accelerated adoption of other Layer 1s and they will continue to outperform Ethereum. The report also explained,
In addition, Che Explain why Solana is a crucial project.
“Solana has the highest staking rate among the major L1s for a reason. The community is strong and noisy Modular Crowd FUD only gives supporters room to maneuver to rack up more.
She also explained, “Solana’s lead wouldn’t go away overnight, but she needs better apps to maintain that lead. “
In all of this, BSC is sort of a star. Arcane Research analyzed that Binance Smart Chain was the first alternative ecosystem to take market share from Ethereum. And after that, projects like “Solana, Avalanche and Terra have seen increasing penetration with other Layer 1 protocols slightly lurking behind.” “
At the time of writing, we can also note that Ethereum’s TVL share as a DeFi channel has fallen to around 62% from close to 70% a few months ago. Channel Terra isn’t right behind, but now demands 18% TVL on Defillama with 14 protocols. This is when 375 protocols are present on Ethereum.
Regarding Terra, Che commented,
“As such, my opinion of Terra is similar to that of South Korea – has a place in the portfolio but not something to be based on.”
On the protocol side, BSC holds 246 protocols and the report also notes that the Binance Smart Chain ecosystem “has experienced massive growth in 2021, taking market share from Ethereum.”