The Explosion of EVM Blockchains

Why Do People Build EVM Chains?

Chain Comparisons

  • BNB Chain (formerly Binance Smart Chain): Launched by the centralized exchange behemoth Binance in August 2020, BNB Chain saw meteoric adoption among users and a dramatic surge in its project ecosystem — owed to its low fees, speed, and accessibility. There are now well over 500 projects building on BSC with a DeFi TVL of $13.1 billion.
  • Avalanche: Designed to be fully decentralized, Avalanche allows anybody to join its network and participate in transaction validation. It supports up to 4,500 transactions per second and achieves transaction finality in under 2 seconds. It is currently the third most popular EVM chain by DeFi TVL.
  • Fantom: Leveraging a unique aBFT consensus protocol, Fantom is designed to be highly scalable and ready for enterprise applications. The platform has recently seen a significant uptick in its userbase thanks to an array of powerful DApps and DeFi products.
  • Polygon: The fifth most popular EVM chain, Polygon is designed to operate as a scaling solution for Ethereum, helping to reduce fees, increase speeds, and provide developers with the throughput needed for their mass-market applications. The platform now hosts to over 7,000 DApps and has a TVL of $4.9 billion.
  • Ethereum Classic: Forked from Ethereum in July 2016, Ethereum Classic is almost identical to Ethereum in its operation, but differs slightly in its ideology. The platform has seen its popularity dwindle in recent years, owing to a lack of developer adoption and a weak DeFi ecosystem.

EVM Chain: Predictors of Success

  • TVL growth rate: A measure of the percentage growth in its DApp ecosystem in terms of value locked in DeFi protocols.
  • Value proposition: Many EVM chains can be considered a copy+paste of Ethereum or other similar platforms, albeit with minor alterations. The future will most likely favor platforms that provide a genuine value add to users and developers that cannot be easily duplicated by a competitor.
  • On-chain transaction activity: The number of transactions processed by the blockchain each day/week can be used to demonstrate its genuine activity and potential utility.
  • Developer activity: The number of Github commits, the general growth in its DApp ecosystem, and adoption by major brands/prominent firms can be a strong indicator of long-term growth potential.
  • Leadership: If the platform is backed by a heavily experienced team with the right strategy and support (financial, technical, and marketing), it generally stands a better chance of long-term success.

Aurora

Arbitrum

ParaState

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