Tron’s Lack Of DeFi Apps Vibrancy Maintain’s The Edge For Ethereum
Following its inception, several market analysts believed that TRON (TRX) would be the biggest threat to the Ethereum ecosystem. That call might have been premature, for the Tron ecosystem lacks a key defining feature for Ethereum, a vibrant Decentralized Finance (DeFi) apps scene.
DeFi is positioned as an indispensable feature for Ethereum, with the buzz in the blockchain’s ecosystem affirming this. About $600 million was locked up in DeFi by 11th December 2019, already a 200% growth from the previous year. The 2020 performance of DeFi however blows this over the fence. By the 7th of February 2020, DeFi assets reached a huge milestone, $1 billion in value!
The impressive gains by DeFi make it a key competitive edge for Ethereum. A new blockchain ecosystem intending to cement its position as a key challenger to Ethereum has its work cut out. Either come up with something similar or better, or they may just not pose the threat they anticipate to front. The TRON ecosystem faces this very huge daunting task.
Admittedly, there may be some DeFi dApps on TRON. They however lack that Ethereum level vibrancy in the form of significant asset values in their smart contract, something that disfavors TRON. The dApps also seem to be largely geared towards gambling. The most vibrant of them, WINK, only manages to gross a $36,440 daily volume.
To pose a challenge to the Ethereum ecosystem, a competing blockchain must similarly much its DeFi vibrancy. It also does help that Ethereum secured an unexplored niche, providing some form of confidence in the project after 2018’s bearish market.
How DeFi is able to effectively execute its contracts isn’t clearly visible now. Even then, it is a pioneer project in the crypto industry with $1 billion assets worth milestone up its sleeves.