The non-EVM alliance could shift DeFi levers in the future.
- Non-EVM chains finally competing in DeFi
- Milkomeda: Creation of the Non-EVM Alliance
- Charles hints at major DeFi growth
Non-EVM chains finally competing in DeFi
Other than Solana and Terra, there are no other non-EVM chains competing in the DeFi space. When I say non-EVM, I mean chains that have their own programming language and their own “virtual machine”. Many argue that all chains that leverage the EVM itself are simply Ethereum scaling solutions, because everything is still tied to Ethereum – think Fantom, Avalanche, Harmony, Tron, and EOS.
Yet Algorand, Cardano, Solana, and Terra all operate entirely and completely outside of the Ethereum environment, which arguably gives them a long-term advantage as they have erected ecosystems that have no “affinity” with Ethereum and raise their own native “ditches”. . Non-EVM channels do not seek a share of, for example, TVL from Curv Finance, AAVE or TVL from Sushiswap. Instead, they build competitors to those same protocols. This is the main difference.
Given the ongoing FUD surrounding Cardano, you wouldn’t think they’re close to breaking into the top 25 channels by total value locked (TVL), but they are. “When Smart Contracts” Became More 262 million in TVL, placing Cardano #26 in all crypto. In reality, Cardano even outperformed Terra in the past 30 days, increasing TVL by 69%, while Terra increased TVL by 53%.
To put that into perspective, no layer 1 in the top 25 is doing better than Cardano this month in terms of DeFi growth, according to DeFi Llama. In 2022, under terrible macroeconomic conditions, Cardano fell from less than 1 million TVL to its current high of 262 million. When he had no place to go but to go up, the intensely debated The UTXO pattern used by Cardano appears to be “a lot of noise for nothing.”
Milkomeda: Creation of the Non-EVM Alliance
Cardano is still down 68% from its all-time highs, and given its growing ecosystem, that may be a steal right now at 79 cents. A growing “non-Ethereum” alliance, which enables interoperability between non-EVM compatible chains, is also about to be launched, which includes Cardano, Algorand and Solana. Jhe project is called Milkomeda and is backed by big players in the space like Arrington Capital, Coinbase, and even Terra.
.@Milkomeda_com bring EVM sidechains / rollups to:
Cardano 🤝 Algorand 🤝 Solana
Make love Not War
— Arrington Capital (@arringtonXRPcap) January 25, 2022
When we look at the roadmap for Milkomeda, it looks like they’ve already integrated with Cardano, with the “private beta” mainnet ending in Q4 2021 and a limited beta mainnet ending in Q1 2022. The next step is to integrate Algorand , then to finish with Solana. The protocol will allow Solidity programmers to write an EVM smart contract in minutes, enabling a seamless transition to these non-EVM environments.
As Milkomeda puts it: “Harness the talent and resources of the largest smart contract community (Solidity) while leveraging chains like Cardano, Algorand, Solana, and Terra. Although the protocol still allows the transfer of projects from Ethereum, the idea is to allow Ethereum developers to deploy smart contracts on these non-EVM chains and create interoperability between the three chains.
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Charles hints at major DeFi growth
When it comes to Cardano, Charles Hoskinson says this recent TVL growth is only a tiny part of what’s happening with Cardano. The “Vasil” hard fork, coming in June, will enable “pipelining”, which increases throughput and, therefore, volume and liquidity.
What most also don’t understand is that many Cardano DApps are waiting for the launch of the Vasil hardfork in June to benefit from pipelining. So it looks like we haven’t seen anything on TVL yet. https://t.co/mMHxwRrF96
—Charles Hoskinson (@IOHK_Charles) March 12, 2022
As IOHK put it: “pipelining – or more precisely broadcast pipelining – is an enhancement to the consensus layer that facilitates faster block propagation. This allows for even greater margin gains, which will further increase performance and competitiveness of Cardano. Once Cardano implements its Hydra scaling solution, the network could theoretically handle over a million transactions per second. The implementation of Hydra will take another step in June.
The basho phase of #Cardano development is all about scaling and optimizing the network. The Hydra family of protocols is a key element on this steady path to increased performance and growth.
ICYMI here is an update from the team👇https://t.co/yvoDZZ2Lif
— Input Output (@InputOutputHK) March 9, 2022
There is no doubt that Cardano is making inroads to become the third largest non-EVM chain, next to Terra and Solana. With tools like Milkomeda creating an alliance between these channels, expect to see the DeFi competition heat up and create real competition with Ethereum.
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