DeFi

Data contradicts the narrative: Ethereum continues to dominate the Layer 1 sector

Published

7 months ago

3 July, 2024

CoinFlix Staff

Data contradicts the narrative: Ethereum continues to dominate the Layer 1 sector

Ethereum leads in smart contracts, Layer 1 revenue, and DeFi TVL.

Ethereumbilled as the world computer, continues to occupy the first place among blockchain networks.

According to compiled data According to CoinMarketCap, Ethereum dominates the smart contract industry with 62% of the $695 billion market cap, the highest level ever as of 2024. Additionally, the network leads in revenue, accounting for 70% of revenue collected by layer 1s, and has doubled its Challenge total value locked (TVL) since the beginning of the year.

DeFi TVL Distribution

BNB Channel Ethereum follows in the smart contracts space with $85 billion, followed by Solana with $59 billion. The ranking is the same for DeFi TVL, with BNB Chain accounting for $5 billion in Q2 and Solana hosting $4 billion.

These numbers, however, contradict the prevailing narrative that Ethereum has lost its grip on the industry and allowed other ecosystems like Solana to claim some of its market share.

Which give?

“Most of the narratives on Twitter about cryptocurrencies are driven by VCs, and VCs can’t charge 2% carry fees and 20% performance fees to hold ETH, but they can for SOL,” the pseudonymous person said. Milliemember of the Synthetix Spartan Council.

Milli told The Defiant that on Ethereum, activity is primarily related to DeFi, while Solana’s activity is entirely seasonal and fueled by the speculative nature of coins“The Solana blockspace is filled with belligerence around memecoins that any serious analyst would be very skeptical of,” Milli said.

Solana wins on some criteria

Analysts report that in some areas of the market, Ethereum is down while Solana is up.

Mert MumtazHelius Labs CEO, told The Defiant that Solana has surpassed Ethereum in terms of economic activity “multiple times,” noting that MEV+ priority fees are higher, as well as validator revenue.

DEX Volume Market Share Chart 30 Days DEX Volume Market Share 30 Days

His views are supported by Blockworks’ research, which indicates that Solana is experiencing its most profitable months in terms of block space. It is also closing the gap with Ethereum in terms of trading volumes on decentralized exchanges (DEXs).

Asked whether the activity could be fueled by an unsustainable trend like memecoins, Mumtaz dismisses it. “The model of low-fee activity combined with high volume has now been proven empirically,” he said. “It doesn’t matter what the source is.”

“Extremely shocked” to see Ethereum lose its dominance

Millie said she would be extremely shocked to see Ethereum lose its dominance in smart contracts, revenue, and DeFi TVL. But the network doesn’t have the same grip on these three metrics.

“L1’s revenue is tricky because we don’t know how long this memecoin business is going to last,” Milli told The Defiant. However, for smart contracts and TVL, she believes that “the chances are slim” because the network has optimized the readability, auditability and openness of the channel.

That last point is an important feature, she explained. Closed-source protocols pose less risk than open-source networks, but that culture, Millie said, is also becoming a major barrier to TVL’s appeal.

Even Mumtaz is skeptical that Solana will overtake Ethereum for DeFi TVL.

According to Llama ChallengeEthereum’s TVL stands at $58 billion, while Solana has $4.5 billion. In the middle, Tron comes in second with $7.7 billion, and in third place is BNB Chain with $4.8 billion.

It is interesting to note Ethereum’s continued dominance in the L1 sector despite the influx of users to L2s in recent months. Millie believes this apparent disparity is due to whale activity.

She said that Layer 2s are “still way too permissioned for the majority of ETH whales” because they don’t yet provide adequate censorship resistance.

She also explained that low gas fees are also a symptom of L2s taking the majority of the activity while whales continue to transact on the base chain, especially in terms of lending and borrowing.

“Whale movements like lending and borrowing don’t require heavy computation and aren’t really time-sensitive,” Millie said. “Plus, when volatility is low, DEX volumes are also low, which in turn drives most of the gas fees.”

Fuente

DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

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Fuente

DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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