While Ethereum is the most preferred blockchain for DeFi protocols, emerging challenges like Solana and USDC are reshaping the landscape. Analysts dissect the quality of liquidity pools across different blockchain networks.
The crypto community is abuzz with Solana’s impressive volume that has flipped all EVM chains, a closer look reveals a different story. The analysis exposes a major flaw – it’s spread across less liquid pools. When considering volume alongside TVL, the expert suggests that Solana falls behind Ethereum and even struggles against other EVM chains.
Delving deeper, the expert, questions if Solana’s volume surge is a mirage. His analysis focuses on “blue chip” DeFi pools, mirroring the criteria for traditional stock indexes. Established history, high liquidity, and sustained volume are the key factors.
Another strong contender might be Circle’s USDC whose growing role in the crypto domain has been likened to the “petrodollar pact” of 1974, where US dollars became the default currency for oil trade. The expert suggests that USDC could achieve similar dominance in DeFi, potentially surpassing Tether’s USDT.
Interestingly, USDC appears more frequently in top-tier pools compared to USDT.
BlackRock’s Entry Into Ethereum: Base DeFi’s Dark Horse
Despite all that, Ethereum remains the undisputed king. The expert stated that half of the top 20 “New Goodness” ranked pools reside on the ETH blockchain, a testament to its high TVL and sustained volumes. This might shed light on Blackrock’s recent strategic move into the Ethereum ecosystem.
Another surprising takeaway is Base, a relatively new network. While they only have 5 pools, Eth’s Aerodrome dominates in all the pools except one, showcasing their strong presence on the network. However, Base boasts the highest volume pool overall.
Ethereum remains the king of DeFi, but Base poses a potential threat with its high-volume pool. On the other hand, Solana’s volume surge originates from less liquid pools, raising questions about its long-term viability. The future of DeFi appears to be a battleground between established players and rising stars vying for dominance through robust liquidity pools.