The Big Shift: Algorand, XLM & HBAR Steal ETH’s Spotlight

Are these DLT altcoins quietly eating Ethereum’s lunch in institutional finance? DeFi data reveals the truth.

Cyborg is stunned with a digital blockchain cube shinning.
Created by Kornelija Poderskytė from DailyCoin

The recent community debate on which crypto currencies are most suited for a quantum computer hazard in the future has sparked a renewed retail enthusiasm in the blockchain’s technical capabilities.

Algorand’s Front-Running Quantum-Proof Strategy Pays Off

According to multiple crypto market connoisseurs, the recent shift related to SWIFT’s ISO 20022. The new gold standard for global financial messaging particularly favors Distributed Ledger Technology (DLT) based chains, already actively testing HBAR & XRP.

However, the puzzle is big enough to fit smaller counterparts to XRP chain like Algorand (ALGO) or Stellar Lumens (XLM). According to the latest research from DefiLlama, the tokenized equity value of Algorand (ALGO) has jumped to 15.2% of the tokenized market.

The associated token jumped beyond 52% in a week since Google mentioned Algorand in their recent scientific paper on quantum computing. Algorand devs were honorably mentioned with the popular Layer-1 blockchain as the most hard-working towards a full-fledged quantum power resistance.

Algorand’s (ALGO) focus on compliant securities infrastructure rather than general decentralized finance (DeFi) has garnered specific attention from companies like Exodus (EXOD), which chose to unload the full tokenization stack on Algorand (ALGO), rather than diversifying.

DeFi Chain Distribution Shows Diminishing ETH Dominance

Another key point is the transaction speed. Ethereum’s DeFi dominance could see further erosion due to the 15-30 transactions per second (TPS) on Layer-1. To compare, HBAR & ALGO are the fastest performing, able to handle up to 10,000 transactions per second.

XRP & Stellar Lumens (XLM) come in the middle by this metric, able to handle from 1,500 transactions per second to 5,000 if bridged. Future Layer-2 scaling solutions & Soroban Smart Contracts are set to bolster this figure to match HBAR & ALGO. Currently, XLM’s DeFi ecosystem takes up 2.6% of the tokenized market with $22.7 million at hand.

Meanwhile, Ethereum (ETH) has lost the majority of decentralized finance (DeFi) market cap percentage-wise, now encircling 38.5% at $329.8 million.

Institutional-grade projects still land on Ethereum on most occasions, deepening the liquidity Morpho & Aave protocols for efficient collateralization of on-chain assets.

Ethereum (ETH) also holds Ondo’s primary institutional deployment, which amounts to $1.3 billion in total value locked (TVL), including Ondo’s native equities like USDY & OUSG.

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People Also Ask:

What is the main point of this discussion?

Many people are saying that Stellar (XLM), Algorand (ALGO), and Hedera (HBAR) are quietly gaining ground because Ethereum (ETH) has some big limitations — especially when it comes to working with big banks and institutions.

Why is Ethereum struggling here to keep up?

Ethereum’s token standards are not fully compliant with ISO 20022 — the global standard that banks and governments use for financial messaging. This makes it harder for institutions to adopt ETH for real-world payments and tokenized assets.

Is Ethereum’s dominance really fading?

According to DefiLlama’s analysis, yes — slowly. While ETH still has the biggest ecosystem, chains like XLM, ALGO, and HBAR are winning in the areas of speed, cost, and regulatory readiness. Hedera even has big corporate backers like Google and Boeing.


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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a DailyCoin Journalist, covering memecoins & latest developments. Tadas has moderate holdings in SHIB, HBAR, LTC, MATIC and a selection of low-cap meme currencies.

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