Ethereum is losing its dominance over the DeFi ecosystem

DEXs are exploring alternative ecosystem to migrate from Ethereum
  • DeFi projects are observed migrating from the platform of Ethereum, finding alternative solutions
  • Binance Smart Chain and SushiSwap ecosystems are getting mainstream popularity
  • Many DeFi projects are seeking Layer-2 solutions for their platforms
  • There are fewer chances for Ethereum 2.0 to regain the trust it’s losing now

Ethereum blockchain seems to be at a decisive point due to its network congestion and high gas fees. Many experts in the cryptosphere are considering that the blockchain is plagued by speed and high transaction fee issues. Due to the high transaction fees, it’s almost impossible for common and small trades to use the blockchain. It is known that even a simple transaction on the Ethereum blockchain costs more than $10.

DeFi is looking to migrate from Ethereum blockchain

Earlier this month, SushiSwap, the popular fork of Uniswap, revealed that decentralized exchanges had added multiple Ethereum alternatives to its platform. It was observed that the platform had received a lot of negative criticism from its community. However, now it is offering a new alternative of ETH to the users and allowing them to migrate.

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SushiSwap is not the only blockchain network that has seen major success. Binance Smart Chain (BSC) has also seen mainstream attention from many DeFi projects. BSC has gained much attention as many Ethereum blockchain projects are not willing to leave Ethereum entirely. Indeed, such projects are generally looking and adding multiple alternatives to their platform. Moreover, 1inch, the crypto exchange aggregator, has also recently added support for BSC.

With BSC and others, Layer-2 options are also gaining traction

Where SushiSwap, BSC, and other alternatives are getting more popular, few Layer-2 solutions are also observed getting integrated with tremendous pace. Many, including SushiSwap and other projects, are observed experimenting with layer-2 options. The CEO of Joseph Delong. According to Kain Warwick, the founder of Synthetix, every project on Ethereum requires a Layer-2 solution.

Will ETH2.0 be able to restore these issues and regain trust?

Ethereum 2.0 is currently in development and is expected to bring sharding features that will help to return the experience to normal. The current issues on the ETH blockchain are opening doors for other blockchains, which means the next upgrade will be unable to regain its previous market share. However, after so many migrations and all, Ethereum is still standing tall, as developers are not leaving the blockchain. And many developers are waiting for new features so that they could present users with exciting options for DeFi interaction.

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Ahtesham Anis
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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