The recent crypto bull market can be partly attributed to the huge uptrend in DeFi tokens, following a bull run in Ethereum. Due to the widespread distribution of Ethereum and years on codes on solidity, there is the leading or the only platform for issuing these Dapps. This begs a question though.
why doesn’t someone just build DeFi on a different base layer
There are few motivations for this as well due to rising GAS fees; the root of the problem with restricted the bull run of 2017, scalability and high fees.
FTX DEX on Solana
Comes, FTX DEX (Decentralization Exchange) is a decentralized version of the FTX centralized exchanges. The daily gain on SOL tokens is currently at 21%. Moreover, the compiled three-day rise in the token from 0.99 is over 100% with the high at $2.06.
Moreover, the rise in the tokens price above $1.5 is attributed to the addition of $SOL tokens across FTX exchange itself. The announcement included a Tesla Truck Giveaway program along with 10,000 SOL tokens. The subsequent rise this morning was extended by the announcement of project serum.
However, the supply of Solana might be a concern for long-term hodlers because of the supply schedule by the end of the year.
Moreover, there are other competitors to Solana as well like Tezos, Tron, Cardano, Ethereum Classic and so many others with faster transaction capabilities.
Why an Ethereum Killer?
Ethereum processes 7 transactions per second, and Serum will be leveraging a tremendously faster platform in the form of Solana. According to SBF Alameda, the founder of FTX exchange it is considerably decentralized as well. He tweeted,
11) Serum is built on the @solana blockchain. Solana can process 10,000 times as much as Ethereum; and it’s 1,000,000 times cheaper.
And unlike many side chains, Solana is a fully fledged, decentralized blockchain with over 100 validators.
— SBF (@SBF_Alameda) July 27, 2020
Last but not the least, in a crypto bull market, hefty gains on positive catalysts are not uncommon. This is also reminiscent of the Coinbase effect where addition on the exchange causes a rise in tokens’ price. Currently, FTX is one of the leading derivatives market, and also a platform for a large number of secondary derivates based on volatility and other factors.
Do you think the expansion of DeFi to other platforms will be bullish for the markets in general? Please share your views with us.