Solana, Polkadot, and Polygon lead growth of the DeFi ecosystem taking market share from Ethereum

  • Solana, Polkadot, and Polygon have reached the “escape velocity” of the DeFi industry.
  • The three demonstrate advancing operations including new partnerships, the launch of new services, and massive investor funding.

Solana (SOL), Polkadot (DOT) and Polygon (MATIC) blockchains have reached the “escape velocity.” This is according to Qiao Wang, a market leader and part of the team of crypto startups DeFi Alliance. The term, “escape velocity” according to him, refers to DeFi ecosystems that have grown exponentially and no longer require aggravated marketing. Such ecosystems also don’t need “dev acquisition by the core team.” He added that Celo and Algorand will possibly be the next to join the bandwagon.

Solana, ranked eighth by market cap, is a strong competitor to Ethereum in the DeFi space. The impeccable rise of DeFi and NFTs has driven SOL’s bullishness, as its networks boast of high throughput and efficiency. In the last 24-hours, SOL has gained 17.2 percent to reach $118.45, according to our data. The token has also skyrocketed by over 6000 percent this year alone.

Growth in DeFi supporting blockchains

Recently, decentralized data oracle Pyth Network went live on Solana, boosting its capabilities. Interest in Solana has also come from institutional investors from who an inflow of $2.7M was seen last week. Later today, Solana is set to unveil a new “Ignition” feature. It could be SOL token burn, a liquidity mining program, or grants for NFT creators or DApps’ developers. Whatever it is, there is optimism that it could increase Solana’s utility alongside pumping SOL prices.

Polkadot, which ranks ninth after Solana, has also strengthened 10.9 percent in the day to trade at $27.83. As venture capitalists flock into DeFi protocols, Polkadot-powered Parallel Finance has recently secured $22 million for DeFi products. The suite includes automated market making, auction loans and derivatives trading for Polkadot and the Kusama network.

Polygon, the 19th largest digital asset by market cap has dropped 2 percent in the day to trade at $1.36. Despite a 16.4 percent loss in the week, Polygon continues to push for developments in its protocol. Recently, AscendEX crypto trading platform integrated Polygon Yield Farming on its staking portal. For a short while, AscendEX users with accounts under $10,000 USDC will earn extra return while yield farming on Polygon. Active participants will earn more annual percentage rate (APR).

Algorand and the crypto industry

As for the upcoming Algorand (ALGO), it ranks 43rd according to market cap. ALGO is up 12.8 percent in the day, now trading at $1.13. Marketed as the blockchain for FutureFi, its recent developments include the launch of Algofi decentralized lending market on the blockchain. Algofi’s users can now earn high interest yield on their cryptocurrency. Currently, Algorand is operating on testnet but plans to launch on Mainnet by Q4 of this year.

Notably, the DeFi sector continues to experience massive growth and intense developer activity with increased adoption. This year, the total value locked (TVL) in DeFi projects has surpassed $40 billion according to financemagnates.com. Compared to $40 million in 2019, DeFi has had an explosive 99,900 percent growth and more is expected.

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A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself.”

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