Ethereum and MATIC predicted to see influx of apps amid market drop
According Spencer noonco-founder of the variation fund, the migration of applications (dApps) to EVM chains such as Ethereum or MATIC might seem likely in the coming months as the crypto industry faces one of the toughest times. reviews of its budding history.
Most observers believe the market is in the midst of crypto winter, which is defined as a prolonged period marked by a steady and widespread reduction in the price of cryptocurrencies, as well as waning interest in the industry.
Since hitting an all-time high of $69,000 in November 2021, Bitcoin has lost around 70% of its value. The May implosion of Terra, the second-largest DeFi ecosystem, resulted in one of the largest financial losses in recent history, with investors losing an estimated $60 billion in a matter of days.
According to Noon, the weaknesses of non-EVM chains, such as a lack of infrastructure, tooling, resources, developers and others, might come into sharp focus as top Layer 1 projects shed millions in market capitalization following drastic price losses.
The Variant Fund co-founder affirms this by saying that he has spoken to several project teams migrating to EVM chains. He thinks, however, that non-EVM chains could find long-term product-market fit (PFM).
Noon stated: “I think non-EVM chains will find PMF long-term but it will take longer than people expect if we’re in a prolonged bear market. The network effects of the EVM are subtle but extremely powerful.”
Terra’s most anticipated project is moving to Polygon
As Polygon’s CEO shared, Ryan WattDerby Stars, a AAA play-to-earn horse racing game, is migrating to the Polygon network, abandoning its initial plans to launch on Terra.
Polygon is also home to a number of the most popular DeFi protocols, as well as many lending applications.
After Terra’s implosion in May, Polygon opened its arms to welcome Terra developers affected by the collapse of the ecosystem.