Can These Surging Altcoins Compete With Ethereum? Glassnode Analyzes Three Growing Platforms

A slew of good contract platforms have been surging in value over the previous 30 days, and blockchain analytics agency Glassnode is digging into the metrics to find out whether or not or not any of those platforms can compete with Ethereum (ETH) sooner or later.

Avalanche (AVAX), Solana (SOL), and Terra (LUNA) have all exploded over the previous month, gaining 292.9%, 212.2%, and 191.4% in worth, respectively, in keeping with CoinGecko.


Glassnode first discusses the “spike in curiosity” on AVAX and SOL.

“Alternative good contract platforms like Avalanche and Solana have discovered huge 30 day token value development as hints of exercise and bets on a multi-chain future begin to garner consideration.”

Glassnode notes that Avalanche had attracted restricted liquidity throughout its decentralized finance (DeFi) initiatives till earlier this month when it announced a $180 million DeFi incentive program.

The Avalanche Foundation allotted the primary $27 million for customers of lending and borrowing protocol Aave and decentralized trade Curve (CRV). The analytics agency highlights the exponential rise of liquidity in AVAX’s DeFi initiatives for the reason that incentives have been introduced.

Source: Glassnode

Glassnode additionally says, nevertheless, that liquidity on Avalanche stays restricted comparatively.

“Projects on Avalanche stay marked by being clones of present initiatives on Ethereum, attracting this development by means of incentives and inflated yields which will or might not persist long run.”

Solana has centered on DeFi protocol implementations, which have pushed development in its ecosystem, in keeping with Glassnode. Solana additionally has a processing capability of between 50,000 to 65,000 transactions per second, which permits the community to scale.

Still, development within the Solana ecosystem may be very restricted in comparison with Ethereum, in keeping with the analytics agency.

“There are 5 initiatives within the Solana DeFi house which have greater than $100M TVL [total value locked]. For comparability, Ethereum boasts over 60 initiatives with greater than $100M TVL.

Solana definitely presents a gorgeous different possibility for initiatives requiring scaling. Though for now, it has barely scratched the floor in competing with Ethereum for complete liquidity.”


Terra has demonstrated “non-trivial indicators of adoption in just a few alternative protocols,” says Glassnode. Anchor Protocol, Terra’s largest DeFi protocol, has greater than $3.4 billion in complete worth locked.

Like Solana and Avalanche, Terra has but to host greater than 5 initiatives with greater than $100 million in liquidity, in keeping with the analytics agency.

“While some different layer one good contract platforms have seen their native tokens rally in current weeks, precise liquidity on every chain stays restricted relative to the Ethereum chain.”

Glassnode sees a world wherein extra customers are migrating to those platforms, notably if Ethereum struggles to scale its community.

“As some customers traverse throughout to newer and extra experimental blockchains, builders should assess the viability and longevity of further customers and capital shifting on or off of Ethereum.

As competitors for customers, consideration and capital will increase, many builders and protocols might discover the trade-offs value it, and even discover untapped worth and alternative in protocol design. And if Ethereum L2s wrestle to scale the community, or create a heavy barrier for consumer expertise, customers might naturally gravitate in direction of different chains in response.”

Check out the total Glassnode report here.

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