Investors have a portfolio to maintain with a huge interest in looking to expand it with other products. The increasing network cost of Ethereum has made it difficult for such investors to explore the much-talked-about sectors, namely, DeFi and NFT.
Network congestion has currently been termed as a reason for the rise in its network price. Two platforms that are grabbing this opportunity to capture more market share are Terra and Avalanche.
Avalanche recorded an increase of 233% in the last six months. This is in terms of the number of active users. The number stood at 36,000 six months ago, and it now stands at 1,20,000.
Terra grew by 25% after registering 100,000 active users as compared to 80,000 active users, a figure that was recorded six months ago.
Ethereum’s issues are evident by a single-digit growth of 3%. It still has the highest number of active users on the platform, but it may lose the spot to its competitors if the network prices continue to rise.
Who Is Leading?
This question has two answers depending on how one measures the lead. While Terra recorded the highest number of Total Value Locked at $12 billion, Avalanche got more active users on its platform. Click here to know more about Avalanche’s price!
Factors contributing to an increase in the number of active users of Avalanche are its high speed to process transactions and ability to securely scale the platform.
Ethereum can process 13 transactions every second, and on the other hand, Avalanche can process 4,500 transactions every second. The difference is vast and supported by the figure of 50 million, which stands for Avalanche’s total number of transactions.
The platform is now eyeing another 50 million transactions.
The growth of Avalanche is also visible through the initiatives that it has announced. It has announced initiatives worth $600 million. This includes an initiative of $230 million that aims to aid liquidity in its growing ecosystem of DeFi.
Avalanche’s growth took off in late July after price feeds of Chainlink arrived on the mainnet of the platform.
Since then, the platform has attracted interest from not just Retail Investors but also from Institutional Investors. Avalanche has even received support from BitGo and has got listed on Kraken.
Where Does Terra Stand?
Terra has come across as a perfect alternative to Ethereum in terms of the largest DeFi ecosystem. It overtook Avalanche in terms of Total Value Locked and Token Price.
LUNA, a virtual asset of Terra, surged by 18,459% in the previous year. This is being coined as a factor for its DeFi volume crossing the mark of $21 billion. Read Luna coin price prediction here!
The only platform to record negative growth was SOL. It had 157,000 active users six months ago. The figure now stands at 133,000. Replacing Ethereum in the market is going to be a huge task. The platform to accomplish that task is surely going to come out as the champion.