In recent days and weeks, we have witnessed a new wave of users entering the first tier projects. At the same time, rising costs of using Ethereum have given networks such as Olench and Cardano the opportunity to expand.
to the Report Coin Telegraph, the growth of DeFi and NFT has led investors to make good profits from these markets. However, such growth would not have been possible without relying on top-tier projects such as Bitcoin and Ethereum.
Smart contracts and second-tier projects promise to revolutionize the logistics industry and finance, but they need secure, high-powered distributed networks to ensure that their data is not tampered with.
Many second-tier projects are currently working on the Ethereum network, which has increased the cost of transactions on the Ethereum network and slowed down their approval process.
London Hard Fork attracted a lot of attention with its fee-burning mechanism, which could turn Ethereum into an anti-inflation asset; However, it has not been able to make a wide-ranging change in the wage reduction debate, and average wages have continued to rise since its implementation.
The increase in fees gave second-tier protocols such as Olench, Terra and Cardano the opportunity to show themselves more than ever. The price of these digital currencies has risen in recent months and more users are turning to them as popular projects seek to bridge the gap between their own ecosystem and these “next-generation Blockchain protocols.”
Bitcoin and Ethereum
The price of Bitcoin has been fluctuating between $ 47,000 and $ 49,000 over a period of several days. The king of digital currencies has fallen below $ 48,500 in the past 24 hours, fluctuating 1%.
Bitcoin is currently trading in the $ 48,400 range. News in the field of digital currencies in recent days has revolved around the axis of coins, and bitcoin is going through a quiet week.
Ethereum, on the other hand, is in a similar situation. Each Ethereum unit currently trades in the $ 3,200 range. The digital currency of the market No. 2 has experienced a 1.5% decrease in price in the last 24 hours.
The market value of digital currencies is currently $ 2.1 trillion, with Bitcoin and Ethereum having the largest market shares at 42% and 17.3%, respectively. Cardano is the third digital currency in terms of market value with 4.2%.
Attack on Olench
Olench prices rose sharply in August. The growth was such that AVAX could be considered the winner of the digital currency market this month.
This growth occurred after the launch of the Avalanche Bridge on July 20. The Olench Bridge is a bridge between the Olench Blockchain and Ethereum, and is a user-friendly product that paved the way for new Olench project users to enter.
As of last week, the bridge handled more than $ 1 billion in transactions between the two networks. Support for new assets such as the StableCoin (USC) is also expected to be added to the Olench Bridge soon.
The protocol has partnered with leading Difai companies such as Avi, Crow and Sushi Swap as part of the Difai to Olench Incentive Program. The program is a $ 180 million cash extraction project developed to bring more applications and assets into the ecosystem.
In this program, the mentioned budget will be used to provide rewards as an incentive to extract liquidity for Avi, Crow and Sushi Swap over a period of 3 months.
Defy protocols that worked on the Olench from the beginning have also seen significant growth, and the value locked into them has increased. According to DeFi Llama, Pangolin with $ 379.4 million and Benqui with more than $ 1 billion in locked assets are among these protocols.
Olench has also developed a fee-burning mechanism. More than 182,000 AVAX tokens have already been burned through this mechanism.
Terra and focus on the field of stable coins
The Terra Blockchain protocol can be considered unique in that it has focused extensively on stable coins backed by Fiat currencies. TerraUSD is one of these stable coins.
LUNA is a native token of the Tera protocol. The digital currency grew by 530% from July 20 to August 24. The vote of Terra Network to upgrade the network and the mechanism of burning the unique tokens of this network has caused this widespread price increase.
Last week, members of the Terra community voted to announce that they would move the Terra network to the main Columbus 5 network. This migration will take place on September 9 (September 18).
From the beginning of 2021 until now, many projects in the field of defense, such as Yern Finance and Crowe, have used Terra in their stable coin pools. Launching new projects on this Blockchain has also made you more aware of your ability to discuss payments.
Anchor Protocol is one of the most popular protocols. The protocol offers low-volatility deposit interest to its users, and Luna holders can use their tokens as collateral to receive a stable coin loan.
After the addition of ether as one of the bail options in the middle of this month, the activities in this network increased.
The total locked value of the protocol has reached more than $ 6 billion since support for ether as collateral in the ecosystem, according to Difai Lima. This made Tera the third largest blockchain in the market in terms of locked value. Ethereum and Bainance China are at the top and second of this list.
It is another project that has seen significant growth in recent weeks. This growth followed Cardano’s advances in supporting smart contracts.
The launch of smart contract support has seen Cardano grow more than 190 percent in the past three weeks. Many users are now excited to use Defy apps in this blockchain.
High participation in Cardano’s pools is one of the results of supporting smart contracts. PoolTool data show that 70.98% of Cardano’s shareholding is currently shared in the network.
The Cardano protocol also allows users to create unique tokens. This is possible without the need for smart contracts and is done through native tokens.
By 2021, proverbial tokens and defy domains had attracted the most attention; Therefore, Cardano’s good price performance can be attributed to these unique defenses and tokens.
As China’s digital currencies and blockchain technology become more widely accepted, the competition between different protocols and networks to overtake each other is growing.
Ethereum is currently the number one platform on the market, which supports smart contracts, and the number of active pools provides users with a high capacity. However, the emergence of new projects has shaken Ethereum’s position more than ever.