5 sizes to help you find the next channel that will appear to the public

Context of the development of the public channel

Simply put, the public channel is a network that brings a variety of challenges and other enhancements.

In the era of Blockchain 1.0, blockchain applications began to evolve with Bitcoin. However, this step is usually digital advantages, which can no longer be popular in the market and there is a demand, so smart contracts have been added. The combination of smart contracts and blockchain has broadened the application scenarios for blockchain, and blockchain has entered phase 2.0, and Ethereum represents that phase well.

At that time, few DeFi operations, the Ethereum ecosystem was mature, the benefits and improvements of the network were better, so most platforms were initially developed by Ethereum, and Ethereum was established as the first leader Of the industry.

But by 2021, Ethereum is starting to have stiff competition. There are three things.

-The DeFi update app has been down since the DeFi summer of June 2020.

-The Ethereum congestion problem is getting worse and worse. High oil prices have prompted all manufacturers and traders to find faster and cheaper blockchains to reduce consumption costs.

- Other chains need to be added to Ethereum's capabilities and explore more areas.

Current development of public channels

Even in 2021, the DeFi market continues to grow, and the rise of NFT and Gamefi has led to the spread of the entire public channel ecosystem.

Judging by the volume data distribution industry in all sectors of Footprint Analytics, the market share of the Ethereum chain has grown from 72.87% to 64% in less than six months, and its value has completely grown. fell almost 9%. We see that the new chains are repaired quickly and regularly. Divide the market into Ethereum chains.

Data source: June 30, 2021 Footprint analysis-Distribution of the public channel's market share

Data source: market share breakdown of the public channel Footprint Analytics-2021 as of 11/23/21

How to find opportunities in the chain

Unlike the chain plan, the public chain which is the basis of the chain block has paid more attention to ecological development, and when ecology is established, the Matthew effect occurs, and ultimately the leader of the public channel occupies more than 80%. Number of users and market share of ...

The ETHereum chain's ETH token rose from $ 10 (December 2016) to a high of $ 4,000 (November 2021), indicating its community capital. The current situation of public racing is not yet secure when the "public star channel" occurs, how to find the meaning of the event and determine the channel Are citizens strong or on the move according to market notions?

This sentence simply measures the value of a public channel in five ways:

public channel performance

Transaction Processing Efficiency TPS is an important measure of the performance of a public chain, and TPS (individual transactions) refers to the number of transactions that a network receives. can be a second higher TPS, the performance of the audience. chain. .

Comparison of the top 5 TPS public channels on TVL:

Top 5 TPS recordings from public channels

TPS breakthroughs have become the vehicle of the public racing channel, and most newer channels guarantee high TPS. However, there is a "triangle inaccessibility" in DeFi that does not simultaneously offer high performance, security, and distribution. , this also makes the network unstable. Solana was also abused in September, but it looks like no good solution can yet reap both benefits at the same time.

public channel token value

The value of the value indicates the measure of the channel by the user and also affects the user's exchange rate.

Data source: Footprint Analytics - part of the public channel token pricing model

According to Footprint Analytics public data figures taken from the above Footprint Analytics figure, the value of the popular Solana token chain has increased 143-fold, from US $ 1.8 to a high of $ 259. Americans. , and the AVAX token from the Avalanche channel is also available. rose from 2 to 2. From US dollars to 135 dollars, the price jumped 66 times, indicating a high market.

Chain ecosystem

The change in the DeFi ecosystem is not the result of supporting one or two DeFi applications. To measure the value of the public chain, the integrity of the ecosystem composition is an important research.

Number of operations: According to important data from the public channel, there are a lot of exports, but not many finalized. In terms of the number of activities in the Footprint channel, 5 of the top 10 public channels have more than 50 projects on chain, and the public channels include. Fewer than 10 projects require additional research, including the recent increase in TVL. Elrond has only one project and little ecological security.

Data source: Footprint Analytics-TOP 10 Number of DeFi public channel projects

Objective: Ecological diversity is necessary for balance and security, of which DEX is a pillar. The purpose of the chain is to connect the public as well as the inadequate infrastructure, and the ecology is also weak.

Data source: Footprint Analytics-TOP 10 Number of public channel projects

How a project operates on the line, the developer's level of work, and how quickly the project starts up all influence whether the line assigns the manufacturer to deliver the project to the public chain.

cross chain tool

First, let's take a look at the number and distribution of chains moving from ETH to other chains.

TOP 10 Number of Hla chain bridges in the public chain

In order to establish a public chain link, chain links are important because they allow money to flow through the chain and users can easily switch assets. It's good for a number of businesses and income chains. For projects with little or no cross-chain links, you need to be very careful about whether you can attract alternate developers and users.

Long-term planning and support for ecological development

The most important thing in the public chain is to create an ecosystem, and in addition to offering better performance and a better user experience, there must be an environmentally friendly development. On the other hand, it has a relation so that plans from other channels can be connected directly to new channels, and on the other hand, it supports the development of new targets such as NFTs, on-chain games, etc. . For example, the NFT project on the Solana channel is very active and the volume of the NFT industry has exceeded 700 million dollars.

Incentives, first look at the ecological economic growth of large public channels this year.

- Polygon announced 'DeFi for All Funds', a $ 100 million DeFi account in April.

-Tera announced the announcement of its green investment worth up to $ 150 million in July.

- In August, the Avalanche Foundation announced the announcement of a cash mining donation of $ 180 million.

- In August, Phantom awarded a total of 370 million FTM awards to TVL projects worth $ 5 million or more.

In August, Celo announced the announcement of a $ 100 million “DeFi for People” project in partnership with Aave and Curve.

In September, Harmony announced it would provide more than $ 300 million in funding to support green development over the next four years.

-Proximity Labs, a research and development organization that has invested in the NEAR ecosystem, announced in October that it will allocate $ 40 million in NEAR tokens over the next four years to support the DeFi ecosystem.

To improve the ecosystem, many public channels have developed recovery plans. In addition to TVL's increased engine and token value, promotional campaigns will attract more developers to take advantage of the channel's functionality if it can be used.

concludes

Overall, the public channel should have several advantages:

- Ecological know-how: compared to Ethereum collisions and high oil levels, the new chains have faster speeds and lower costs. Perception of chain links: demand for chain links is increasing and chain links are important and strong relationships: help parties work together quickly and explore new chains in new areas and in an environmentally friendly way NFT Benefit from developers such as chain games and other activities to share their work. - Ecological initiatives, such as the flood, Polygon plans to create a DeFi fund to support developers.

The above shows the strength of public channels from various angles. Now, due to their high product and packaging industry, it is still the first choice for most Ethereum DeFi operations. But Ethereum is not alone, the market will be joined by several chains. Today, public channels not only compete for performance, but also have the ability to capture new hot spots such as ecology, apps, NFTs, and the metaverse.

The multi-string competition model shows that the industry continues to improve the ecosystem for the best of producers. Can Ethereum be a market leader? We'll see how connection management and network integration will solve data sharing issues.