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Dogecoin Co-Founder Rejects $14,000,000 Offer To Promote Much-Hyped Crypto Project Dogechain

Dogecoin Co-Founder Rejects ,000,000 Offer To Promote Much-Hyped Crypto Project Dogechain

The creator of popular meme token Dogecoin (DOGE) is rejecting an offer worth millions of dollars in digital assets to promote an unofficial offshoot crypto project. Billy Markus, co-founder of the dog-themed crypto asset, has rejected an offer of 10 billion DOGE, worth about $14 million at time of writing, to promote Dogechain, a blockchain […]

The post Dogecoin Co-Founder Rejects $14,000,000 Offer To Promote Much-Hyped Crypto Project Dogechain appeared first on The Daily Hodl.

Whales and Sharks Gobble Up Over $7,863,000,000 in Bitcoin As ‘Impatient’ Traders Drop Their Holdings: Santiment

Polygon gains 83% in a month, but data show project has been losing traction

MATIC's market cap is 69% below its all-time high, and the network's TVL and DApp data haven't picked up recently.

Polygon (MATIC) had a promising July, gaining an impressive 83% in 30 days. The smart contract platform uses layer-2 scaling and aims to become an essential Web3 infrastructure solution. However, investors question whether the recovery is sustainable, considering lackluster deposits and active addresses data.

MATIC/USD on FTX. Source: TradingView

According to Cointelegraph, Polygon rallied after being selected for the Walt Disney Company's accelerator program to build augmented reality, nonfungible token (NFT) and artificial intelligence solutions.

Polygon announced on July 20 plans to implement a zero-knowledge Ethereum Virtual Machine (zkEVM), which bundles multiple transactions before relaying them to the Ethereum (ETH) blockchain. In a recent interview with Cointelegraph, Polygon co-founder Mihailo Bjelic stated this solution would slash Ethereum fees by 90% and boost throughput to 40–50 transactions per second.

Another reason for Polygon's rally was the growing number of platforms that started to offer liquid staking for MATIC tokens, which enabled holders to earn additional rewards. Examples include Lido Finance, Balancer, Meshswap and Ankr Staking, according to DeFi Pulse.

Despite currently being 69% below its -time high, Polygon remains a top-12 token by capitalization rank. Moreover, the network holds $1.72 billion worth of deposits locked on smart contracts, known in the industry as total value locked, or TVL.

Polygon's Ethereum-compatible scaling is fully functional, hosting decentralized applications (DApps) that vary from decentralized exchanges (DEXs), collateralized loan services, yield aggregators, NFT marketplaces and games.

Polygon smart contracts deposits dropped 42%

Despite Polygon's 83% rally in 30 days, the network's TVL measured in MATIC tokens dropped by 42% in the same period. As a comparison, Fantom (FTM) scaling solution declined by 14% in 30 days and Klaytn (KLAY) increased by 11%.

Polygon Total Value Locked, MATIC. Source: DefiLlama

In dollar terms, Polygon's current TVL of $1.42 billion is 67% lower year-to-date. Still, such a number is not distant from Solana's (SOL) $2.08 billion, or Avalanche's (AVAX) $2.52 billion, according to DeFi Llama data.

To confirm whether Polygon's TVL decline is caused by fading adoption, one should analyze DApp usage metrics. Nevertheless, some DApps, such as games and NFT marketplaces, do not require large deposits, so the TVL metric is irrelevant in those cases.

Polygon DApps 30-day usage metrics. Source: DappRadar

As shown by DappRadar, on August 1, on average, the number of Polygon network addresses interacting with decentralized applications decreased by 19% versus the previous month.

Considering Polygon's TVL has declined by 42%, the network lacks a more substantial user base growth to support further MATIC token price momentum. Still, Quickswap, the leading DApp, presented 138,530 active addresses over the past 30 days. As a comparison, the leading Ethereum application OpenSea held 299,910 users in the same period.

The above data suggest that Polygon has lost some of its traction in the market for scaling solutions. However, the project's recently announced zero-knowledge is yet to be implemented, but its benefits could drive MATIC above $1.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Whales and Sharks Gobble Up Over $7,863,000,000 in Bitcoin As ‘Impatient’ Traders Drop Their Holdings: Santiment

3 reasons why Bitcoin is regaining its crypto market dominance

Hint: Many altcoins—not just LUNA—are down over 80% from their all-time highs in 2022.

Bitcoin (BTC) is regaining its lost crypto market dominance even as it trades nearly 60% below its record highs.

Bitcoin dominance at 6-month highs

The Bitcoin Market Dominance (BTC.D) index, a metric that weighs BTC's market capitalization against the rest of the cryptocurrency market, jumped to around 47% on May 27, its highest since October 2021.

Bitcoin Market Dominance daily chart. Source: TradingView

The dominance index swelled despite the drop in Bitcoin's market cap in the last six months from $1.3 trillion in November 2021 to nearly $550 billion in May 2022, suggesting that traders were more comfortable selling altcoins. 

Let's look at three likely reasons why traders have been rotating out of the altcoin market to seek safety in Bitcoin.

Ethereum "Merge" narrative is cooling down

Ethereum's native token Ether (ETH), the largest alternative cryptocurrency by market cap, has witnessed consistent declines in its market dominance in the last five months—from 22.38% in December 2021 to 17.86% in May 2022.

Ethereum Market Dominance daily chart. Source: TradingView

The plunge comes after two years of a sustained uptrend, with ETH/BTC rising more than 200% between September 2019 and December 2021.

As Cointelegraph reported, Ether outperformed Bitcoin in recent years, largely due to the hype surrounding its long-awaited protocol upgrade, called "the Merge," which hopes to make Ethereum more scalable and less expensive.

But the upgrade, which aims to transition Ethereum's blockchain from proof-of-work to proof-of-stake—a counterpart known as Beacon Chain—has faced repeated delays in its launch.

Only recently, Martin Köppelmann, the co-founder of the Ethereum Virtual Machine- (EVM)-compatible Gnosis chain, highlighted a seven-block reorganization on the Beacon Chain, meaning that the chain got briefly "forked" in its testing phase.

Ether dropped by nearly 13.5% against the U.S. dollar following the reveal on May 25 while ETH/BTC plunged to 0.059, the lowest in six months. 

ETH/BTC daily price chart featuring key support level. Source: TradingView

Ethereum lacks narratives to drive ETH's price upward after undergoing the Merge upgrade, noted OxHamZ, an independent market analyst, saying that investors have already "priced in" the network upgrade hype. 

LUNA to zero

Bitcoin's renewed crypto market strength also appears due to the Terra (LUNA) market's collapse.

LUNA/BTC, a financial instrument that traces the Terra token's strength against Bitcoin, fell by 99.99% to 0.00000004 in May, which made it practically worthless.

Meanwhile, LUNA declined similarly against the dollar, raising anticipations that traders dumped the token to seek safety in BTC and cash.

LUNA/BTC daily price chart. Source: TradingView

LUNA's market cap before the May's deadly crash was $40.88 billion.

Related: Crypto funds under management drop to a low not seen since July 2021

Altszn ded 

On the whole, the altcoin market, containing everything from large-cap blockchain projects to sketchy crypto assets, has fallen by nearly 65% six months after topping out near $1.7 trillion.

Altcoin market cap daily chart. Source: TradingView

A deeper look into some tokens shows that — unlike Bitcoin — most are down over 80% from their all-time highs, hinting at an overall investor exit from altcoins and into cash, stablecoins or BTC.

DeFi projects and their downside retracement from record highs. Source: Messari
Some dead crypto projects so far in 2022. Source: Messari

That is primarily because Bitcoin isn't only the oldest blockchain, but stands on its own without any central authority.

Historically, Bitcoin's dominance drops during crypto bull markets as waves of new tokens spring up during the mania phase.

For instance, the duration of the infamous initial coin offering (ICO) pump coincided with BTC.D dropping from nearly 96% in January 2017 to 35% in January 2018.

BTC.D daily price chart. Source: TradingView

Then the March 2020 crash was the beginning of the DeFi and nonfungible token (NFT) hype, boosted further by the Federal Reserve's quantitative easing. 

Therefore, if Bitcoin's market dominance has indeed bottomed out, it could once again align with a macro bottom in Bitcoin price, and possibly the beginning of a new bull market phase in the coming months.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Whales and Sharks Gobble Up Over $7,863,000,000 in Bitcoin As ‘Impatient’ Traders Drop Their Holdings: Santiment

Solana NFT marketplace integration and DApp metrics shine even after SOL’s 20% drop

SOL price gave up a chunk of its recent gains, but data shows there are strong reasons for investors to remain bullish.

Solana (SOL) price reached $143.50 on April 2 after an incredible 82% rally over a 20 day period. This positive performance can be attributed to recent NFT markets-related news and a marketwide bounce, but the current 22.7% decline could have investors confused. 

Solana/USDT at FTX. Source: TradingView

The rally started after Coinbase Wallet added support for SOL and other Solana-based blockchain tokens on March 18. The crypto exchange also outlined plans to "further integrate" with Solana by connecting the Coinbase Wallet with the decentralized applications (DApps) and nonfungible tokens (NFTs) hosted on the network.

The expectation of OpenSea's integration of the Solana network also excited investors. This means Solana will join Ethereum, Polygon and Klaytn as the payment options visible in the drop-down "all chains" tab on OpenSea's "rankings" page.

Solana's strategy to focus on NFT markets seems to have paid off because the layer-1 blockchain network has risen to third place all-time in total NFT sales on April 6. Moreover, the latest 30-day accumulated data shows Solana amassing $216 million worth of NFT sales.

Solana's DApp deposits are on the decline

Solana's primary decentralized application (DApp) metric started to display weakness in late March after the network's total value locked (TVL) dropped below SOL 50 million.

Solana network Total Value Locked, SOL. Source: DefiLlama

The chart above shows how Solana's DApp deposits saw a 30% decrease in three weeks as the indicator reached its lowest level since Sept. 20, 2021. As a comparison, Terra's TVL increased by 34% year-to-date, while Fantom network deposits grew by 30%.

On the bright side, on April 5, Neon released an alpha version for the first Solana Ethereum Virtual Machine (EVM) cross-compatibility and scaling solution and on April 7, Solana announced that over 1.6 million network addresses currently hold an NFT.

A DeFi application stood out front the crowd

To confirm whether the TVL drop is concerning, one should analyze DApp usage metrics.

Solana DApps 30-day on-chain data. Source: DappRadar

As shown by DappRadar data on April 8, the number of Solana network addresses interacting with decentralized applications increased by 11% on average. Orca, a user-friendly decentralized exchange (DEX), was the absolute highlight, amassing 153,290 users.

Even though Solana's TVL has been hit the hardest compared to similar smart contract platforms, there is solid network use on DeFi and NFT marketplaces, as measured by Magic Eden's 212,230 active addresses in the last 30 days.

The data above suggests that Solana investors should not worry about the most recent correction. The Solana ecosystem is fueled by the delivery of important milestones toward Ethereum compatibility and NFT market integrations and as long as this happens the potential for further price appreciation seems likely.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Whales and Sharks Gobble Up Over $7,863,000,000 in Bitcoin As ‘Impatient’ Traders Drop Their Holdings: Santiment

Klaytn token down 15% in a month, but network’s TVL shows resilience

KLAY's market cap is roughly 70% below its all-time high, but the network's TVL and DApp data hint that the service-oriented blockchain might bounce from its lows.

Klaytn (KLAY) had a promising start in March 2021, reaching an impressive $11 billion market capitalization following its debut. However, investors have exaggerated their expectations as the token's current total value stands at $3 billion, down roughly 70%.

KLAY/USD on Binance. Source: TradingView

Although not as well known as the leading smart contract blockchains, Klaytn remains a top-35 token by capitalization rank. Moreover, the network holds $1.2 billion worth of deposits locked on smart contracts. Capital locked on smart contracts is known in the industry as total value locked, or TVL.

Real use cases and strong backing

Klaytn is a flexible modular network architecture created by Kakao, a publicly-traded South Korean internet giant. The Asian tech group's shares are valued at $36 billion, backed by diverse applications in traditional markets, including games, chat, taxi and rides, financial services, and a venture arm.

Businesses can customize and operate their own service-oriented blockchains built atop Klaytn architecture. These autonomously operated subnetworks are called Service Chains and are fully customizable.

The network is fully functional, offering decentralized applications (dApp) ranging from DEX exchanges, nonfungible token (NFT) marketplaces, social networks, collateralized loans, and games. For instance, KlaySwap, Klaytn's leading dApp, holds $746 million in TVL and 19,840 active addresses over the past week.

According to Klaytn's blog, the network is gearing up its infrastructure to provide services for the gaming and metaverse sectors. Initiatives include launching an open-source tools developer package that incorporates layer-2 solutions and adding direct support to Ethereum Virtual Machine (EVM) applications. Additional services include providing management and financial support for projects with high potential.

Klaytn's roadmap includes higher scalability by leveraging layer-2 service chains, additional interoperability bridges with other blockchains, and integrating an Interplanetary File System (IPFS) gateway for decentralized storage.

Klaytn smart contracts deposits jumped 24%

Despite KLAY's negative 15% performance over the last 30 days, the network's TVL increased by 24% in the same period. As a comparison, Arbitrum scaling solution stalled at $1.7 billion, and Polygon decreased to $3.35 billion from $4.65 billion on Feb. 15.

Klaytn Total Value Locked, USD. Source: DefiLlama

In dollar terms, Klaytn's current TVL of $1.2 billion is 13% below its $1.35 billion peak in January 2022. Yet, these figures represent less than 2% of the aggregate TVL (excluding Ethereum), according to DeFi Llama data.

In terms of recent developments, on Feb. 17, Klaytn joined the Blockchain Game Alliance, which encourages the development of standards and sharing of best practices in the decentralizing gaming sector. The initiative also aims to increase the public understanding and awareness of blockchain games.

Related: Cointelegraph Research report analyzes GameFi’s bumper 2021 and trends for 2022

To confirm whether Klaytn's TVL growth is backed by increased adoption, one should analyze DApp usage metrics. Some DApps, such as games and collectibles, do not require large deposits, so the TVL metric is irrelevant in those cases.

Klaytn DApps 30-day usage metrics. Source: DappRadar

As shown by DappRadar, on March 15 the number of Klaytn network addresses interacting with decentralized applications decreased by 5% versus the previous month.

Even though Klaytn's TVL has increased by 24%, the network lacks a more substantial user base growth to support further KLAY token price momentum. Still, KLAYswap, the leading Dapp, presented a decent 39,090 active addresses over the past 30 days.

The above data suggests that Klaytn has found a niche within the decentralized application segment. If the project's proposed features come to fruition, KLAY's token price will likely hold $1.05 as medium-term support and present a decent upside.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Whales and Sharks Gobble Up Over $7,863,000,000 in Bitcoin As ‘Impatient’ Traders Drop Their Holdings: Santiment

Polygon’s focus on building L2 infrastructure outweighs MATIC’s 50% drop from ATH

MATIC price is still 50% below its all-time high, but the network’s TVL and DApp data hint that the layer-2 solution remains a serious contender.

After a devastating 50% correction between Dec. 25 and Jan. 25, Polygon (MATIC) has been struggling to sustain the $1.40 support. While some argue this top-15 coin has merely adjusted after a 16,200% gain in 2021, others point to competing scaling solutions growth.

MATIC token/USD at FTX. Source: TradingView

Either way, MATIC remains 50.8% below its all-time high at an $11 billion market capitalization. Currently, the market cap of Terra (LUNA) stands at $37 billion, Solana (SOL) is above $26 billion and Avalanche (AVAX) is at a $19 billion market value.

A positive note is that Polygon raised $450 million on Feb. 7, and the funding round was backed by some of blockchain’s most considerable venture funds, including Sequoia Capital.

Polygon offers scaling and infrastructure support to Ethereum Virtual Machine-based (EVM) decentralized applications (DApps). Besides, it is not plagued by the high transaction fees and network congestion that impact the Ethereum network.

However, as proof-of-stake layer-1 networks emerged and offered low-cost smart contract capabilities, it vastly increased the competition for Ethereum network decentralized finance (DeFi), nonfungible token minting, marketplaces, crypto games, gambling and social applications.

In comparison, Terra’s total value locked increased by 340% between July and December 2021, reaching $12.6 billion. Similarly, Avalanche’s smart contracts deposits increased from $185 million to $11.11 billion in the same period.

The use of Polygon’s scaling solution is declining

Polygon’s primary DApp metric started to display weakness in August 2021 after the network‘s TVL dropped below 4 billion MATIC.

Polygon Total Value Locked, MATIC. Source: DefiLlama

The chart above shows how Polygon‘s DApp deposits peaked at 7.4 billion MATIC in July 2021, then drastically declined over the next couple of months. In dollar terms, the current $3.5 billion TVL is the lowest number since May 2021. These figures represent less than 5% of the aggregate TVL (excluding Ethereum), according to DefiLlama data.

Another positive is that on March 9, Ankr, a multi-chain toolkit for blockchain infrastructure, enabled a token bridge between Ethereum and Polygon. The first release will allow the aMATICb liquid staking token to be sent and stored. This enables users to earn additional layers of rewards on DeFi platforms.

To confirm whether the TVL drop in Polygon is troublesome, one should analyze DApp usage metrics. Some DApps, such as games and collectibles, do not require large deposits, so the TVL metric is irrelevant in those cases.

Polygon DApps 30-day on-chain data. Source: DappRadar

As shown by DappRadar, on March 10 the number of Polygon network addresses interacting with decentralized applications grew by 5% versus the previous month. Even though Polygon’s TVL has been hit the hardest compared to similar smart contract platforms, there is solid network use in the gaming sector, as measured by Crazy Defense Heroes’ 199,260 active addresses in the last 30 days.

On Nov. 16, Polygon launched its zk-STARK-powered Miden Virtual Machine, a zero-knowledge Scalable Transparent ARgument of Knowledge. Polygon has also committed over $1 billion for developing complex DeFi applications that need sensitive information redacted on digitized assets, reducing their size for fast verification by blockchain participants.

The above data suggest that Polygon is holding its ground versus competing chains, and those holders might not worry too much about MATIC’s 50% price correction. Polygon’s ecosystem continues to flourish, and the fact that it offers much demanded layer-2 scaling solutions for multiple industries can be viewed as a bullish factor.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Whales and Sharks Gobble Up Over $7,863,000,000 in Bitcoin As ‘Impatient’ Traders Drop Their Holdings: Santiment

Researchers From Stanford University Working on New Privacy-Focused Blockchain

Cryptography researchers from Stanford University are developing a new privacy-focused layer-1 blockchain. According to a new press release, the Espresso Systems project aims to build a blockchain combining “proof-of-stake consensus and a [Zero-Knowledge]-Rollup mechanism to achieve high throughput and low fees.” Espresso Systems has already raised $32 million in funding led by Greylock Partners and […]

The post Researchers From Stanford University Working on New Privacy-Focused Blockchain appeared first on The Daily Hodl.

Whales and Sharks Gobble Up Over $7,863,000,000 in Bitcoin As ‘Impatient’ Traders Drop Their Holdings: Santiment

Bitcoin’s sub-$40K range trading and mixed data reflect traders’ uncertainty

The market gave up last week’s gains from Bitcoin’s surge to $45,000, but derivatives metrics suggest retail traders are more bullish than market makers and whales.

The phrase “hindsight is 20/20” is a perfect expression for financial markets because every price chart pattern and analysis is obvious after the movement has occurred.

For example, traders playing the Feb. 28 pump that took Bitcoin (BTC) above $43,000 should have known that the price would face some resistance. Considering that the market had previously rejected at $44,500 on multiple instances, calling for a retest below $40,000 made perfect sense, right?

Bitcoin/USD at Coinbase. Source: TradingView

This is a common fallacy, known as "post hoc" in which one event is said to be the cause of a later event merely because it had occurred earlier. The truth is, one will always find analysts and pundits calling for continuation and rejection after a significant price move.

Meanwhile, on March 2, Cointelegraph reported that Bitcoin "could force a $34K retest." The analysis cited an "ailing momentum" because Russia had just announced its invasion of Ukraine.

In the past seven days, the aggregate market capitalization performance of the cryptocurrency market showed an 11.5% retrace to $1.76 trillion and this move erased the gains from the previous week. Large cap assets like Bitcoin, Ether (ETH) and Terra (LUNA) were equally impacted, reflecting nearly 12% losses in the period.

Weekly winners and losers among the top-80 coins. Source: Nomics

Only two tokens were able to present positive performances over the past seven days. WAVES rallied for the second consecutive week as the network upgrade to become Ethereum Virtual Machine (EVM)-compatible advanced. The transition is scheduled to start in the spring and the new consensus mechanism will provide a "smoother transition to Waves 2.0."

THORChain (RUNE) jumped after completing its Terra (LUNA) ecosystem integration, enabling the blockchain to support all Cosmos-based projects. ThorChain users now have more trading and staking options available, including TerraUSD (UST) stablecoin.

Funding rates flipped positive

Perpetual contracts, also known as inverse swaps, have an embedded rate usually charged every eight hours. Perpetual futures are retail traders' preferred derivatives because their price tends to track regular spot markets perfectly.

Exchanges use this fee to avoid exchange risk imbalances. A positive funding rate indicates that longs (buyers) demand more leverage. However, the opposite situation occurs when shorts (sellers) require additional leverage, causing the funding rate to turn negative.

Accumulated perpetual futures funding rate on March 7. Source: Coinglass

Notice how the accumulated seven-day funding rate flipped positive in all of the top four coins. This data indicates slightly higher demand from longs (buyers) but is not yet significant. For example, Bitcoin's positive 0.10% weekly rate equals 0.4% per month, which is not eventful for traders building futures' positions.

Typically, when there's an imbalance caused by excessive optimism, the rate can easily surpass 4.6% per month.

Options data is pricing in a potential price crash

Currently, there is not any clear direction in the market, but the 25% delta options skew is a telling sign whenever market makers overcharge for upside or downside protection.

If professional traders fear a Bitcoin price crash, the skew indicator will move above 10%. On the other hand, generalized excitement reflects a negative 10% skew.

Bitcoin 30-day options 25% delta skew: Source: Laevitas.ch

As displayed above, the skew indicator held 10% until March 4, but slightly reduced to 7% or 8% during the week. Despite this, the indicator shows that pro traders are pricing higher odds for a market crash.

There are mixed feelings coming from retail traders' futures data, which shows a shift moving away from a slightly negative sentiment versus options market makers pricing in a higher risk of a further crash.

Some might say that the third failure to break the $44,500 resistance was the nail in the coffin because Bitcoin failed to display strength during a period of global macroeconomic uncertainty and strong commodities demand.

On the other hand, the crypto sector’s current $1.76 trillion market capitalization can hardly be deemed unsuccessful, so there's still hope for buyers.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Whales and Sharks Gobble Up Over $7,863,000,000 in Bitcoin As ‘Impatient’ Traders Drop Their Holdings: Santiment

Dragonfly Research claims Ethereum is the ‘MS-DOS’ of blockchains

Research shows that throughput on Solana surpassed the leading EVM chain by a wide margin, leading researchers to predict that competing Layer 1 chains will out-do EVM chains.

An experiment from Dragonfly Research that compared the performance of six blockchains by testing the capacity of Automated Market Makers on each has found Solana’s Orca DEX was the clear winner in trades per second. 

It managed 273.34 trades per second and created a new block every 590 milliseconds.

Binance Smart Chain (BSC) wasn’t too far behind with 194.6 trades per second on PancakeSwap, followed by Polygon (MATIC), Avalanche (AVAX), Celo (CELO), and finally Ethereum (ETH).

A blog post by researcher “GM”  argued that while there was a rich ecosystem built on Ethereum Virtual Machine (EVM) compatible chains, the results showed “if you want really high performance now you have to look outside the EVM space.”  A now deleted line in an earlier version of the post suggested users will eventually need to “abandon the EVM.”

Dragonfly Research is the research arm of Dragonfly Capital and its portfolio page shows that it has invested in Celo, Avalanche, Cosmos, and Near, which is mentioned in the report. It has not invested in Solana.

GM concluded that with time, other layer-1 blockchains will surpass EVM-compatible chains. He wrote:

“Overall I come away with this impression: Ethereum is the MS-DOS of smart contract operating systems. But the current era of blockchains takes us into the Windows 95 era.”

EVM chains are blockchains that are compatible with Ethereum tooling. They often aid in the scalability of the Ethereum network.

The results of the experiment were published on Mar. 2. It was an attempt to compare blockchain throughput by measuring how many swaps could be made per block on native automated market makers (AMM). AMMs refer to decentralized exchanges (DEX) such as Uniswap and PancakeSwap that facilitate non-custodial token swaps on-chain.

The basic question GM attempted to answer was: “If you filled an entire block with Uniswap V2-style trades, how many trades per second would clear?”

Uniswap V2 was used as the benchmark given it is the dominant DEX with $1.6 billion in 7-day transaction volume. The benchmark was 18.38 transactions per second with 13.2 seconds per new block according to the report. Author GM noted that although it is not a perfect benchmark, it is “illustrative in getting a holistic view of performance.”

The leading DEX on each blockchain tested was spammed with token swaps on the most liquid pairs to determine the current limit of their capacity. They did not test rollup scaling on layer one chains because rollups can be used on all chains.

While the five EVM chains in the experiment could be tested the same way, Solana required a different methodology which GM wrote about in a subsequent blog post.

AMM test to assess performance of blockchains

GM wrote that none of the blockchains in the test were being used to their full capacity and that he expects “all of the major L1s will improve in their performance over time.”

Although the results of the report demonstrated Solana’s faster performance, proponents of decentralization point to other issues on Solana. The team from the Spookyswap DEX on Fantom Opera — which is EVM compatible — criticized the findings, telling Cointelegraph that Solana “is a completely centralized network unlike Ethereum.”

Solana has also been plagued with service outages, which has raised concerns about the security of the network and the reliability of applications in the ecosystem. The Spookyswap team added

“Solana can be turned off and has a history of going down for days. You do not see that with proper EVM layer 1 chains.”

GM urged readers to “Do the math yourself” to confirm or refute the conclusions he has come to. He also noted that optimizations on blockchains happen very quickly, so with the introduction of a new optimization on any chain, the results may vary.

Related: StarkNet now open for DApp deployment on Ethereum mainnet

He also concluded that there was only a maximum 25x performance difference between Ethereum and Solana, demonstrating that in general “nobody is getting that great performance” from linear token transactions on-chain.

Whales and Sharks Gobble Up Over $7,863,000,000 in Bitcoin As ‘Impatient’ Traders Drop Their Holdings: Santiment

New Altcoin Built on Polkadot (DOT) Explodes After Launch, Gets Quick Listing From Binance

An eagerly anticipated Polkadot-based project is lighting up the night sky after crypto exchange Binance announced plans to list the token. Moonbeam (GLMR) is a smart contract platform compatible with the Ethereum Virtual Machine (EVM) that functions as a Polkadot parachain. The project goes beyond Ethereum’s base features by also offering staking, on-chain governance and […]

The post New Altcoin Built on Polkadot (DOT) Explodes After Launch, Gets Quick Listing From Binance appeared first on The Daily Hodl.

Whales and Sharks Gobble Up Over $7,863,000,000 in Bitcoin As ‘Impatient’ Traders Drop Their Holdings: Santiment