3 cryptocurrencies generating much more dApp revenue than Solana


While stock market performance has long been the preferred measure of investor success, the cryptocurrency market has been circling Wall Street for some time. This year alone, the aggregate value of all digital currencies more than tripled to $ 2.39 trillion as of December 23.

While there are many factors influencing the cryptocurrency space, including the prospect of real-world payment coin adoption, arguably the most exciting aspect is the potential for building decentralized applications (dApp ) on the blockchain.

The ability to transparently and immutable record financial and non-financial transactions offers almost limitless potential for developers. They can build finance-focused apps for payments or loans, or maybe build money-making games on the blockchain that promote 3D virtual environments (i.e. the metaverse). These applications can be applied to both consumer and enterprise environments.

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Crypto investors are in love with Solana

It’s the Huge Potential of Smart Contract-Based App Development that People Are Excited About Solana (CRYPTO: SOL), the fifth largest cryptocurrency by market value ($ 58 billion). Smart contracts being the protocols that verify, facilitate and enforce the negotiation of a contract between two parties.

Solana’s claim to fame is her unbridled speed. To put things in context, Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), the two most popular blockchain-based networks, are capable of processing 7 transactions per second (TPS) and 13 TPS, respectively. Meanwhile, Solana claims to be able to process (drum roll) 50,000 TPS. It’s more than twice as fast as the payment hub Visa, which processes at 24,000 GST. Speed ​​and scalability are critical to the future success of dApps.

Another aspect of Solana that makes it a very intriguing network is its unique proof of history protocol. Normally, validators should talk to each other to determine how much time has elapsed between an event. With Solana, the Proof of History protocol efficiently performs this call, speeding up the completion of transactions on the network.

The investments of Solana’s development teams in unbridled speed are starting to pay off. Solana has generated nearly $ 3.2 million in protocol dApp revenue in the past 30 days, and it has brought in over $ 12.1 million in dApp revenue this year, according to data from TokenTerminal.com.

A laddered stack of hundred dollar bills turning into digital currency on blockchain.

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This crypto trio is circling around Solana

Yet Token Terminal also shows that three very popular cryptocurrencies have left Solana in the dust, in terms of dApp protocol revenue, over the past 30 days and the past year.

Ethereum

Ethereum is perhaps the least surprising cryptocurrency of all that revolves around Solana in dApp revenue. Token Terminal lists Ethereum with just over $ 1 billion in revenue in the past 30 days and nearly $ 4.8 billion in the past year. In a certain context, the billion dollars registered in the last 30 days is 10 times greater than blockchain project # 2.

The reason why investors and dApp developers love Ethereum so much is that it was the first project to introduce smart contracts. These contracts are what allowed companies to consider going beyond finance-focused applications and consider Ethereum for tasks like supply chain management. There is a whole world of applications beyond sending and receiving money on the blockchain, and Ethereum was the first to expose it.

Another factor that works in Ethereum’s favor is the mountain of support it receives. The Enterprise Ethereum Alliance is a body of more than 100 companies, some of which are well known, whose goal is to promote the use of the Ethereum blockchain. While network congestion isn’t exactly a good thing, the mere fact that Ethereum handles congestion and higher transaction fees demonstrates its popularity.

An Esports player raising his fist as he holds a smartphone in his other hand.

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Infinite Axis

Another cryptocurrency that has far surpassed Solana in the dApp revenue department is blockchain-based gaming. Infinite Axis (CRYPTO: AXS). Axie has grossed $ 105 million in the past 30 days – it’s the aforementioned number 2 behind Ethereum – and $ 1.26 billion in the past year.

The game, which is built on the Ethereum blockchain, is fairly straightforward. Users collect, breed, breed, and battle these monster-like creatures called Axies. A minimum of three Axies is required to go into battle, with the winner gaining experience points which are used to improve certain aspects of their Axies.

What makes this blockchain project so intriguing is that each Axie is a non-fungible token (NFT). In other words, users retain ownership of their virtual creations which can be used in-game or sold in a marketplace. It’s completely different from legacy game development where companies retain ownership of all creations.

With equity and crypto investors absolutely enamored with the prospects of the Metaverse, Axie Infinity and its massive dApp earnings over the past year are proof of its potential.

A person holding a shiny golden lock surrounded by a lattice representing blockchain nodes.

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avalanche

A popular third cryptocurrency that generated significantly more dApp protocol revenue than Solana avalanche (CRYPTO: AVAX). Over the past 30 days, Avalanche has grossed around $ 14.7 million, with the project generating $ 37.7 million in dApp revenue in the past year.

The appeal of Avalanche’s contract-based smart grid is both its incredible speed and the compatibility of its blockchain with other networks. Regarding the former, the project website indicates that it can process at over 4,500 TPS, with a block finality of less than two seconds (i.e. transactions validate and adjust in less than two seconds). For comparison, Bitcoin and Ethereum process transactions on average of 60 minutes and six minutes, respectively.

As I pointed out before, what could really attract dApp developers to Avalanche in the months and years to come is the compatibility of its blockchain. With the Ethereum virtual machine – the software platform that allows developers to create dApps on the Ethereum blockchain – already running on the Avalanche network, it would not be at all surprising for developers to move their projects to Avalanche to profit. lower and faster costs. execution.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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