DeFiance Capital: The gap between leading cryptocurrency projects and their competitors is widening.

Original author: @Arthur_0x

Translated by: BlockBeast

DeFiance Capital CEO @Arthur_0x shared his insights on the current state of different tracks in the cryptocurrency industry on social media platforms. He pointed out that in an industry that is similar to a completely free market and where most things are open source, the gap between dominant projects in the cryptocurrency space and their competitors has not narrowed, but has actually widened. BlockBeats has translated the original text as follows:

Decentralized Currency

Bitcoin continues to lead the industry, while other currencies are relatively insignificant and have significantly reduced market capitalization, such as Litecoin (LTC), Bitcoin Cash (BCH), and Zcash (ZEC).

Smart Contract L1

Ethereum continues to lead, with the total market value of all Ethereum L2 solutions (Arbitrum, Optimism, Polygon, Optimism, zkSync, Mantle, and Starkware) surpassing all other L1 solutions except for BNB. Additionally, except for Solana and some Cosmos App chains, developers generally prefer to build on Ethereum L2 solutions.

Trading Platform

Regarding the CEX industry, for offshore trading platforms, although Binance's market share has recently declined due to legal and regulatory issues, it is still a leader. OKX is gradually gaining more market share and now offers better products for most traders, in addition to liquidity. Coinbase, as the largest fiat-supported exchange in the United States, has a market share exceeding Kraken, Gemini, and Bitstamp.

For DEX, Uniswap continues to maintain a dominant market share of over 70%, while Curve is gradually losing market share. After all, it takes time to regain trust after being attacked. Maverick is the only new DEX that has recently received some attention.

Liquidity Mortgage

Lido continues to maintain and expand its dominant position, and no other liquidity collateral solution has been seen to take away a large market share for the time being.

Unlicensed lending

Aave and Compound continue to be the two leaders, with Aave's TVL being twice that of Compound. Radiant is interesting, but its TVL is still less than 15% of Compound's. I excluded JustLend because it is actually a personal bank.

Stablecoin

Among the fiat-supported stablecoins, USDT continues to maintain its dominant position, while the supply of USDC continues to decline and is expected to continue to do so as it is the easiest to exchange and holders can typically easily convert it to T-bill yields. pyUSD, distributed through Paypal's network, is interesting but still in its early stages, and historically all successful stablecoins have required a top-tier CEX as a distribution partner.

As for decentralized stablecoins, MakerDAO is the clear leader in this field. Since the DSR was raised to 8% and 5%, the supply of DAI has reversed the trend and is one of the few DeFi protocols showing growth in this market. Overall, I believe that other decentralized stablecoins are currently unable to challenge DAI.

Decentralized Derivatives

Despite the fact that dYdX's v3 product has had no new trading pairs or features for over a year, it remains the leader with a market share of over 50%. The release of v4 may widen the gap with its peers. SNX and GMX are two other leading perpetual contract DEXs based on LP pool architecture.

NFT Market

This is a rare example where the emerging Blur has taken a significant market share from OpenSea, accounting for over 60%. Of course, this is driven by token incentives, so the evolution of Blur will be very interesting after incentive trading is removed.

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