Qtum, Tron, EOS and Komodo – the blockchain protocols once dubbed the “Ethereum Killers” due to their high transaction throughput and low gas charges, may not be the killers they were originally thought to be.
Blockchain developers are spending less time on the once-popular Ethereum killer blockchains in favor of other projects, according to a recent report by venture capital firm Outlier Ventures.
Newer “multi-chain protocols such as Polkadot, Cosmos, and Avalanche are seeing a steady increase in core development and developer input,” according to the report. While the Ethereum killers Qtum, Tron, EOS and Komodo show a decline in development rates.
According to GitHub, the development of all Ethereum Killers dropped 50% + during 2020 to early 2021. Blockchains focused on interoperability between protocols and decentralized finance (DeFi) have seen the largest gains in the same time period.
Ethereum (ETH) continues to lead overall active development with more than double the number of active developers (220) than Bitcoin (103), and weekly commits of ETH (866) and BTC (441). The second most popular blockchain is Cardano with 144 developers and 761 commits per week. Hyperledger and Filecoin round out the remaining five most actively developing blockchains.
The sharp decline that you see in the image above is the decline that occurs each year during the Christmas season.
2020 was a real boom for DeFi as the total locked-in value rose from less than $ 700 million in January 2020 to $ 15 billion in December 2020. Today, according to Defi Llama, nearly $ 150 billion has been blocked. An absolutely astronomical growth in popularity and use.
This sentiment was shared in the Outlier report, as the developer contributions of most DeFi protocols steadily increased throughout 2020 and the first quarter of 2021. At the time of writing, Maker, Gnosis, Synthetix, Augur, and Bancor were DeFi’s leading development protocols. Since the release of this article, Binance Smart Chain-powered DeFi protocols have skyrocketed with the rise in popularity of PancakeSwap, Venus, and BUNNY.
So what does this all mean? If you were a user of any of the “Ether killer” ecosystems, you would notice that development has dropped noticeably, and the developers have moved to the side of compatibility and DeFi.
We have already seen the explosive growth of blockchains that are working to simplify interoperability between different blockchains, and we have also seen the explosion of DeFi. Therefore, in order to know where the market is heading, you need to keep track of which projects developers spend their time on. Simply put, the more work on the project, the better the result, the higher the price of the coin.
Obviously, I am not a financial advisor, this is just my opinion. When I found this report, I thought the methodology and information it contained might be useful to someone else.