This altcoin is the biggest threat to Ethereum (ETH) so far this year, according to CryptoCompare

This altcoin is the biggest threat to Ethereum (ETH) so far this year, according to CryptoCompare

Blockchain market data provider CryptoCompare reveals the biggest threat to Ethereum (ETH) in the decentralized finance landscape in Q1 2022.

In a new report, CryptoCompare says that Ethereum is seeing stagnant growth in total value locked (TVL), the amount of all crypto assets staked that earn interest and other rewards.

The crypto market data provider says stiff competition from Ethereum peers is one of the reasons behind the stagnant growth of the second-largest digital asset by market capitalization.

“Ethereum has maintained its dominance (now at 55.6%) despite flat growth with a current TVL of $150bn (down 20.8% from end of 2021 Q4). This stagnation can be attributed in part to the weak performance of crypto assets during the quarter, but also to stiff competition among alternative Layer 1 protocols.”

CryptoCompare says that Terra (LUNA), a blockchain protocol primarily focused on hosting algorithmic stablecoins, was the most successful against Ethereum in Q1 2022.

“Terra, for example, has proven to be the most successful Ethereum challenge in the last three months, with quarterly TVL growth of over 72.0% to $35.2B, continuing the Solunavax narrative of 2021.”

Solunavax is the acronym for the trio of leading Ethereum competitors: Solana (SOL), LUNA, and Avalanche (AVAX).

According to the cryptocurrency market data provider, Terra’s TVL growth has been fueled by attractive returns on its Anchor Protocol fixed income platform.

Repurposing Terra’s flagship stablecoin, UST, on the Anchor protocol is currently generating an annualized return of 19.46%.

Ranked eighth by market cap, Terra is trading at $98.39 at the time of writing.

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