23 April, 2024



Adoption Struggles for New EVM Chains: Solana’s NEON and Others

22 Jul, 2023

27 Oct, 2023

  • Ignas highlights slow adoption rates for new EVM chains, with Solana’s NEON seeing around 200 daily transactions and a TVL of $23k.
  • While Near’s Aurora saw a drastic TVL drop, Moonbeam retains decent activity, and Cosmos Kava emerges as the standout with increasing trade volumes.
  • Market conditions influence performance; chains launched during bullish phases outperform those introduced in bearish times, as seen with NEON and EOS EVM.

Ignas, a prominent DeFi researcher and content creator, has provided insights into the adoption rates of various EVM chains, drawing attention to Solana’s recently launched EVM chain, NEON. Despite Solana’s promise of combining Ethereum’s infrastructure with faster speeds and reduced fees, NEON’s daily transactions currently hover around 200, with only two dApps deployed and a TVL of just $23k.

This slow uptake isn’t unique to Solana. EOS EVM, which boasts features like 1-second block intervals and support for over 800 swaps per second, only witnesses approximately 400 daily transactions. Interestingly, a significant chunk of EOS’s TVL is concentrated in a single dApp, Noah Swap.

Near’s Aurora, once a market darling with a TVL of $1.28B in 2022, has dramatically shrunk to a TVL of $15.8M today. On the other hand, Moonbeam, Polkadot’s EVM parachain, has managed to maintain decent traction with leading dApps like Lido, Frax, and Curve deployed on its platform.

The standout performer seems to be Cosmos Kava. While its TVL has decreased from $664M to $212M, trading volumes are on the rise. This success has led Tether to introduce native USDT on Kava, setting it apart from its peers.

On the trading front, NEON’s token value plummeted post-launch, with Moonbeam’s GLMR and AURORA similarly underperforming. Market conditions might play a role in these trends. During bullish phases, EVM chains such as Aurora, Moonbeam, and Kava had better outcomes compared to EOS EVM and NEON which launched during bearish periods and encountered tougher obstacles.

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