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Trader Joe takes its first step into the Ethereum ecosystem

December 2, 2022 Coin Telegraph

Despite the new multi-chain vision, the Trader Joe team confirmed that its “true home” and “top priority for all growth efforts” will continue to be on Avalanche.

Decentralized finance (DeFi) protocol Trader Joe has announced its very first expansion from Avalanche and onto the Ethereum ecosystem, as part of its plans to access new markets and drive up user activity.

The decentralized trading platform announced its “multi-chain” expansion into Ethereum layer-2 scaling solution Arbitrum One on Dec. 1 and follows around a month after it stated its intention to expand to additional markets and ink new partnerships amid falling TVL and user activity in the third quarter.

We're extremely excited to announce that @traderjoe_xyz has expanded into the Ethereum ecosystem with Arbitrum One as its destination! ‍ https://t.co/pjnoirxkVi
— Arbitrum (,) (@arbitrum) December 1, 2022

The team stated that they’re working closely with Offchain Labs — the team behind Arbitrum One — to launch a testnet “within the coming days,” before officially deploying it onto the Arbitrum One mainnet in January 2023:

“Deployment to Arbitrum One is the next step in this global expansion effort and we look forward to introducing the innovative AMM built on Avalanche, and also working with new partners to benefit the collective DeFi ecosystems of Arbitrum and Avalanche.”

The deployment comes as Trader Joe has also expanded its ecosystem through partnerships and integrations with wallets, data clients and other vectors” since the second quarter as a means to spread the exposure of Avalanche and the Trader Joe itself.

Among the most notable recent partnerships include that of Trust Wallet and Crypto.com.

Trader Joe added that the protocol’s original AMM — Joe V1 AMM — would also move onto Arbitrum One in addition to the Liquidity Book AMM, which will bring “zero slippage trades and discretized liquidity provisioning to all Arbinauts.”

As for why Trader Joe chose to deploy its AMMs on Arbitrum One, the team said they were impressed by Offchain Labs’ efforts in building an ecosystem of DeFi protocols on the network, which is indicative of its 53.4% market share in total value locked (TVL) across all Ethereum layer-2 scaling solutions.

“Deploying (the) Liquidity Book will be a great addition to the vibrant ecosystem,” the team added.

Image shared by Trader Joe regarding its recent Arbitrum expansion. Source: Joe Content.

Despite announcing that it was “time to go global” on Crypto Twitter, the Trader Joe team confirmed that its “true home” and “top priority for all growth efforts” will continue to be on Avalanche.

Trader Joe also also clarified that its token, JOE, in addition to lending platform Banker Joe, nonfungible token (NFT) marketplace JoePegs and its staking platform would not join Liquidity Book AMM and Joe V1 AMM on Arbitrum “in this initial phase.”

The announcement appears to have a positive impact on the price of JOE, which increased 13.35% from $0.163 to $0.185 over an eight hour period before cooling off to $0.179, according to data from CoinGecko.

Trader Joe is currently the top-ranked decentralized exchange (DEX) and third-ranked DeFi protocol on Avalanche with $94.13 million in TVL, trailing only Ethereum-native lending platform AAVE and Avalanche-based liquid staking provider Benqi, according to data from DeFi aggregator DefiLlama.

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3 reasons why Solana (SOL) price could see additional upside in 2022

December 17, 2021 Coin Telegraph

Avalanche

Steady ecosystem growth, institutional investment and a healthy derivatives market are strong signals that SOL will continue to be a top contender in 2022.

Solana (SOL) has become a top contender in the smart contract industry and in the past year, the network's total value locked (TVL) grew by $660 million and stretches across more than 40 decentralized applications to hit an all-time high above $11 billion.

Even with this growth, investors have reason to question whether the current $56 billion market capitalization is justified and how it compares to competing networks like Binance Smart hain (BNB), Avalanche (AVAX) and Polygon (MATIC).

*Avalanche, Solana, Binance Coin, and Polygon, priced in USD. Source: TradingView*

By analyzing the past six-month price performance, there's an apparent decoupling from Terra (LUNA), Solana and Avalanche when compared to other smart contract platform competitors.

There is strong institutional appetite for Solana's ecosystem

Solana's market capitalization is more than double that of Avalanche and Terra, each of which has a $26 billion market cap. Searching Solana's latest news on Cointelegraph yields an exciting array of institutional investments, ranging from the $314 million private token sale by Solana Labs in June, to an $18 million fundraise in September by Solana's DEX project Orca.

There's solid evidence of a growing ecosystem judging by investor appetite. However, to understand how successful Solana's scalability solution is, we have to evaluate its usage metrics.

Looking at the number of active addresses on Solana's DApps is a good place to start.

*Solana, Ethereum, Avalanche and Polygon 7-day most active dApps. Source: DappRadar*

Ethereum's leading DApp by active addresses is Uniswap, which has 188,200. Therefore, Raydium’s 97,600 weekly users is rather impressive, considering it was launched just 10 months ago. Meanwhile, back in Feb. 2021, Uniswap already held over $4.3 billion TVL.

As for Solana’s NFT marketplace Magic Eden, its 58,400 weekly active addresses also account for more than half of Ethereum’s OpenSea, the sector’s absolute market leader in volume and users activity.

Avalanche user activity is highly concentrated on the Trader Joe decentralized finance app, but its $715 million weekly volume pales in comparison to Uniswap’s $22.1 billion or Raydium’s $12.5 billion. The same can be said by Polygon, which has $573 million in trading activity at its QuickSwap DEX.

Solana has the third largest futures market

Solana currently holds the third largest futures open interest, which is the most relevant metric in derivatives contracts. This indicator aggregates the total number of contracts held by market participants regardless of the recent trading activity.

*Solana futures aggregate open interest. Source: CoinGlass*

Despite the sharp drop since the Nov. 8 peak at $1.9 billion, the current $860 million futures open interest ranks Solana the third derivatives market by size. For example, Binance Coin (BNB) futures holds $520 million, followed by Terra (LUNA) with $430 million.

Solana leads in TVL, users and derivatives markets

Undoubtedly, there's an impressive amount of activity coming from Solana's on-chain data and derivatives markets. The network’s TVL increased by 15x over the past six months and Solana's DApps users is nearly half the amount of users on the Ethereum network.

Solana seems to be quickly closing the gap in three important metrics: TVL, active users and derivatives markets. Competitors like Terra, Avalanche and Polygon seem a long way behind, which possibly justifies the market capitalization premium.

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.

Trader Joe