Analysts of cryptocurrency market data provider CryptoCompare highlighted in a recent analysis which is the biggest project that competes with ETH.
According to analysts, ETH’s biggest competitor is taking center stage in the decentralized finance (DeFi) sector during these first four months of the year.
In its report, CryptoCompare further said that ETH is experiencing stagnant growth in the Total Locked Value (TVL) which is the amount of all staking cryptocurrencies that are generating interest and other rewards for users.
The data provider said fierce competition from ETH rivals is one of the reasons behind this.
“ETH maintains dominance (now at 55.6%) despite stagnant growth with a current TVL of $150 billion (down 20.8% from end-2021, Q4). This stagnation can be attributed in part to the poor performance of crypto assets during the quarter. But it is also linked to the fierce competition between alternative Layer 1 protocols.”
ETH’s Biggest Competitor
As CryptoCompare highlighted, the Terra protocol, a blockchain protocol primarily focused on hosting algorithmic stablecoins, was the most successful in taking on ETH in 2022:
“Terra, for example, has proven to be the most successful challenge for ETH over the past three months, with TVL growth quarter-on-quarter of over 72.0% to $35.2 billion, continuing the Solunavax narrative. from 2021.”
Solunavax is the acronym for the trio of ETH’s main competitors – Solana (SOL), LUNA and Avalanche (AVAX).
According to the data provider, TVL da Terra’s growth is attributable to attractive yields on its fixed income platform, Anchor Protocol.
Additionally, staking Terra (LUNA) on the Anchor Protocol currently generates an annual percentage yield of 19.46%.