In recent months, another trend saw Ethereum layer 2 sidechains – the likes of Phantom and Polygon, which were elucidated by a DappRadar Industry Report – continue to gain traction as well.
In the report, the Dapp tracking service observed that wallets connecting to Ethereum dapps fell from a high of more than 168,000 on February 20 to less than 94,000 on March 1 in a 10-day period.
According to DappRadar, this occurred as several layer 2 networks saw an increase in users and wallets connecting to them.
Some of the layer 2 networks that are chipping away at Ethereum, either by implementing bridges or sidechains, include:
Overall, over a two-day period between February 27- 28, 2022, the number of wallets connecting to these networks rose by 10%, while Ethereum saw a 20% decline in the same metric.
Layer 2 refers to a secondary framework or protocol that is built on top of an existing blockchain system. The main goal of these protocols is to solve the transaction speed and scaling difficulties that are being faced by the major cryptocurrency networks.
However, here is the latest data (March 12, 2022) for user wallets interacting with Ethereum and its layer 2 competition over the last 7 days:
However, in the overall DeFi landscape, Terra remains the biggest gainer in recent months. The platform, whose $LUNA token has surpassed Ether to become the second most staked token, has gained an astronomical 75.25% in TVL over the last 30 days.
Terra thus stands out even despite the upheaval in the EVM world that have all shed their TVL in the last 30 days.