Usage in the Ethereum network including TRON (TRX), EOS, IOST, Ontology (ONT) and NEO; It continues to dominate the decentralized finance (DeFi) space as it performs significantly better than other smart contract platforms.
According to DappRadar’s 3rd quarter DeFi ecosystem report, which is a platform that monitors and analyzes decentralized applications, Ethereum accounts for 96% of the total transaction volume of $ 123 billion in the new ecosystem, while 3 Quarters is the best quarter for DeFi so far.
The second largest cryptocurrency by market cap, is also a clear leader in terms of daily active wallets on DeFi. Ethereum is responsible for 57% of DeFi daily active wallets, and the proportion of TRON and EOS is 35% and 5% respectively.
Smaller smart contract platforms are trying to catch up with this ratio of user activities. DappRadar reported that Ontology’s daily active wallets increased by 1.589%, and NEO experienced an 840% growth between 2019 and 2020. IOST also experienced an increase in the metric after increasing 357%.
DappRadar also highlights the strength of yield farming, which is an important contributor to Ethereum’s dominance in the DeFi space.
“It is clear that yield farming has effectively helped Ethereum maintain its leadership position throughout the third quarter of 2020.”
As Ethereum becomes the de facto platform of choice for DeFi protocols, DappRadar says the network faces great concern. DappRadar notes that as more DeFi protocols enter the network, the platform is facing severe congestion symptoms.
“While the consequences of Ethereum are surprising, one of the main problems slowing it down is congestion. Gas prices showed impressive increases in the third quarter of 2020. ”
DappRadar says the network congestion in Ethereum could open the door for other platforms to become viable alternatives.