According to spencer afternoonThe co-founder of the Variant Fund, a return to application (DApp) EVM chains such as Ethereum or Matic could be expected in the coming months as the crypto industry faces one of the most critical periods in its nascent history.
Looks like we are going to see a great migration in EVM chains like $ETH And $MATIC in the coming months. As L1 prices fall, vulnerabilities in non-EVM chains (lack of infra, tooling, resources, development, etc.) become increasingly noticeable. Spoke to several teams going back.
— spencer.lens (@spencernoon) 14 June 2022
Most observers agree that the market is in the midst of a cryptocurrency winter, defined as a prolonged period characterized by a steady and widespread decrease in the price of cryptocurrencies as well as dwindling interest in the industry. is marked.
Since reaching an all-time high of $69,000 in November 2021, bitcoin has lost nearly 70% of its value. The May explosion of Terra, the second largest DeFi ecosystem, resulted in the most significant financial loss in recent history, as investors lost nearly $60 billion in just a few days.
According to Noon, vulnerabilities of non-EVM chains, such as lack of infrastructure, tooling, resources, developers and others, may come into sharp focus as top Layer 1 projects lose millions in market capitalization after huge price losses. is lacking.
The co-founder of Variant Fund claims to have spoken to several project teams that are migrating to EVM chains. However, he believes that non-EVM chains may find product-market fit (PFM) in the longer term.
Noon said: “I think non-EVM chains will find PMF long term, but if we are in a prolonged bear market it will take longer than people expected. The network effects of EVMs are subtle but extremely powerful.”
Terra’s most anticipated project migrates to Polygon
We continue to be the home of web3 gaming @0xPolygon,
Our stacks of supernets, POS, and ZKs give builders many options now and in the future, all in conjunction with the best gaming team in Web3.
We are proud to welcome @DerbyStars_HQAnd for all Terra projects, Polygon! $MATIC pic.twitter.com/FCIkAJ2Lvu
— Ryan Wyatt (@Fwiz) 14 June 2022
As shared by Polygon’s CEO, ryan wattDerby Stars—an AAA play-to-earn horse racing game—is abandoning its initial plans to launch on Terra and migrating to the Polygon network.
Polygon is also home to many of the most popular DeFi protocols as well as a number of lending applications.
After the explosion of Terra in May, Polygon opened its arms to welcome Terra developers affected by the collapse of the ecosystem.