DEFI citizens want to perform their transactions safely and quickly, without any intermediaries. But this is not yet possible.
By early 2021, the vast majority of assets held in DeFi applications were on the Ethereum network. However, a recent study published by JPMorgan shows that the share of DeFi applications using Ethereum has fallen to 70% by the end of 2021. Now the number of networks such as Terra, Avalanche, Binance Smart Chain and Solana that work with Proof of Stake and do almost the same job as Ethereum is growing. In addition, these networks do the same job that Ethereum does both faster and cheaper.
Let’s look at USD Coin for example. USDC was launched on the Eth mainnet less than three years ago. But later it spread to other networks, including Solana. According to the CEO of the Consortium that printed the USDC, given the fee and speed issues in Eth, there is no such situation in Solana. Similarly, SushiSwap and other similar DeFi applications, which were initially installed on Eth, were also moved to other blockchains.
The planned changes to Ethereum are likely to take at least a year. It also seems predictable that the Ethereum network will lose more sunday share. At the moment, just like dec iOS, Android and Windows, blockchains are in a race among themselves. The winner will undoubtedly be the platforms that solve the problem of security, speed, scalability and transaction fees.