Decentralized finance is currently the center of the crypto world. With dozens of DeFi projects springing up every day, and crypto-currencies like Chainlink and YFI accumulating multi-million dollar profits. Most of these projects rely on the Ethereum Blockchain for their operation. However, soon ETH could be replaced by a competitor. For, as Tommy Mustache comments in the Tweet of the Day, Tron may surpass Ethereum in the DeFi sector:
Binance launches DeFi platform for its users
Tron and Ethereum’s competition for the DeFi
Decentralized finance is one of the most competitive sectors today. And that is because, with so many projects emerging every day, and millions of dollars entering this portion of the crypto market. It is normal that all members of the crypto community are thinking of ways to capitalize on DeFi fever.
However, so far the big winner of the DeFi boom has been Ethereum. Well, it is in the block chain of this crypto currency where most of the decentralized finance projects are located. This has significantly increased the number of transactions within its Blockchain, and therefore the waiting times and commissions.
And this is exactly the opportunity that Tron is seeing. Well, unlike Ethereum, the cryptomoney created by Justin Sun has very low execution times and commissions. At the same time it offers capabilities similar to ETH, allowing it to directly compete with this currency for DeFi domain:
ETH will always be the king of DeFi, but other block chains will begin to eat up ETH’s market share over the years unless ETH soon fixes the gas problem.
The Tron Gas Commission is one cent per smart contract.
So, even though Cryptosoft is and will be the leading crypto currency in the DeFi industry for the foreseeable future. The effort that Tron is making to reach and exceed its capabilities will likely lead to a decrease in the absolute dominance of ETH in the ecosystem, as mentioned in his Twitter account by crypt influencer Tommy Mustache.