The blockchains have created a small number of dominant players across various categories.
Areas such as liquid staking, lending/borrowing, stablecoins, derivatives, and prediction markets are dominated by a select few protocols.
- In liquid staking, LIDO+Coinbase+Rocketpool alone controls 95% of the market share.
2. In decentralized exchanges, Curve+Uniswap+Balancer+PancakeSwap controls 80% of the TVL. Protocols where you can swap/trade cryptocurrency
3. In lending/borrowing, Aave+JustLend+Compound controls 60% of the market share. Protocols that allow users to borrow and lend assets
4. In stablecoins, USDC+USDT+BUSD controls 90% of the market share.
5. In derivatives, GMX+DYDX controls 75% of the market share. Protocols for betting with leverage
6.In prediction markets, Azuro+Polymarket+Gnosis controls 70% of the market share. Protocols that allow you to wager/bet/buy in future results
As these protocols grow, it becomes harder for new protocols to gain market share due to the network effect associated with Developers, TVL, users, community, and protocols building on top of them. what do you think, can newer protocols grow in the market?
