Ethereum Is No Longer Hosting The Top DeFi Tokens

Ethereum Blockchain network, whose native token is also called Ether, continues to pronounce itself as one of the most prominent Blockchain networks in the space. The Blockchain network currently hosts most of the Decentralized Finance (DeFi) protocols from the booming DeFi space. Ethereum smart contracts have also proven beneficial to many Blockchain developers, who have fled to the network for its uniques Blockchain offerings. The booming Non-fungible tokens (NFTs) space has also been credited to the Blockchain Network, which has ensured that the space’s creatives could tokenize their work.

CAKE and LUNA are the most performing DeFi tokens since January

However, despite the Blockchain network starting the year on a solid note, new research data from crypto analytics provider- Messari suggest that the Blockchain might no longer be the home for the most performing DeFi tokens. The success of the DeFi space, which had been on the uprising since 2020, continues to marvel everyone in the Blockchain space.

However, according to Messari, the most performing tokens in the space are tokens of new protocols, which have emerged this year. Alternatively, while Ethereum plays host to many of these protocols, Messari confirms that since the beginning of 2021, the most performing token in the DeFI space doesn’t have any affiliation to the Ethereum Blockchain.

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The two most performing DeFi tokens, since January 2021, are PancakeSwap’s $CAKE and Terra’s $LUNA, who have both gained by more than 3,031% and 2,784%, respectively. While Binance-owned Binance Smart Chain powers the PancakeSwap DeFI protocol, the Terra Blockchain is built around the Stablecoins.

Many analysts believe that the usage of CAKE by investors to earn rewards and vote on the PancakeSwap protocol is one reason why the token has been thriving since the beginning of the year. On the other hand, LUNA, currently backed by the Stablecoin project, is used by investors to earn rewards on staking, and crypto analysts believe it is why the token had witnessed unprecedented success in this quarter of the year.

Is Ethereum losing its shine?

While Binance Smart Chain, TRON network, and a few other Blockchain projects continue to rival Ethereum, many analysts are beginning to feel concerned that the Blockchain network might be losing its grip on the DeFi space. Last year December, the Blockchain protocol launched the first phase of Ethereum 2.0, known as Beacon Chain, much to its users’ delight.

The network is proposed to increase transaction speed, scalability, and overall performance of the Blockchain network. Unfortunately, Ethereum users have observed that the new upgrade has caused an increase in gas fees and has been touted to be one reason why these DeFi protocols seek alternatives.

However, Ethereum will continue to roll out the other phases of the new network, as it prioritizes its overall performance. Alternatively, users will be hoping that the new upgrade will bring about reasonable transaction costs, as the need for alternatives is high at the moment.