When we speak of best coin collaterals for crypto loan extravaganza, Bitcoin (BTC) and Eithereum (Ether, ETH) are the first that come to one’s mind. Indeed, Ethereum offers now as much as 7.64% APR on Bitfinex on loaned coins as of November 10.

First, let’s compare the lending rates for our set of comparable highly liquid coins – the ones that are not only used for DeFi financing but also as stores of value. Lending and borrowing cryptocurrencies is becoming an increasingly important sub-sector of crypto finance, one that may end up shaping how the underlying assets themselves are valued and priced in the markets.

Credit: justlend.org

As we see, on this particular platform, the “Borrow” annual yield for Tron is lower, whereas the Supply yield is, vice versa, higher than those of Ether, which might appear somewhat illogical in respect to their comparable liquidities and market caps. Note, that Supply APY consists of supply base APY and supply mining APY. Since Ethereum is so widely accepted amongst DeFi platforms, anyone can use it as collateral almost anywhere. All major DeFi platforms such as MakerDAO, Compound Finance, dYdX, Dharma, Nuo Network, and more do accept Ether as collateral for taking out a crypto loan. By depositing Ethereum (Ether) (or other Ethereum-based coins to Compound liquidity pools, investors can borrow a wide range of ERC20-protocol-based tokens including DAI, USDC, REP, WBTC, or even more ETH.

Ether is the gas that powers all of the DeFi platforms we know and love. Without Ether, these platforms simply wouldn’t exist! Aside from that, Ether has been the most widely-accepted cryptocurrency as collateral in securing DeFi loans – something which doesn’t look like it will change anytime soon. Ether is the second-largest cryptocurrency in the world, and will likely stick around that for a long time if not forever.

Despite its volatility, Ether is slightly more stable than the majority of altcoins with extremely high trading volume compared to the rest of the cryptocurrency market. This makes it more liquid, accessible, and reliable for use in dApps and lending platforms.

Now let’s turn to their physical characteristics. It is well known, that TRON offers a high transaction speed. The transaction speed is much greater for the TRON blockchain when compared to Ethereum. So TRON is recognized as a high-performing network. Also, TRON blockchain is said to be more reliable and scalable than Ethereum’s one. Besides, it has a better processing speed. Also, the processing speed is much needed for a decentralized network. Tron blockchain platform is said to be more advanced than Ethereum blockchain by varying consensus algorithms and cryptocurrency.

TRON as a project initially declared a narrower goal than Ethereum. It aimed to return the freedom to the Internet in terms of creating and using content, primarily of an entertainment nature. Tron blockchain empowers content creators like game developers and artists. So this blockchain platform offers true value to their workflow.

The TRON platform can support really large decentralized projects, comparable in scale to the Facebook social network, or the Youtube video hosting service, and this can be considered a serious concern for Ethereum. TRON also offers developers a really interesting and attractive platform for building decentralized applications. To facilitate their work, the project created a TVM virtual machine that supports Remix, Truffle, and Web3.js, making it easier for applications built within and outside of TRON to interact.

Major Difference Between Ethereum vs Tron

If the Ethereum network can support 20 to 25 transactions per second, TRON has this figure two orders of magnitude higher. Comparing these two powerful blockchains, both are token development platforms that emerged in different timelines. But both of them gathered their pace after being adopted as a digital currency. Despite those facts, there are some differences between these blockchains. So we just need to know them before creating a crypto token for our own business (or pleasure sometimes).

  • Algorithm
  • Transaction speed
  • Programming language
  • Community
  • Decentralization
  • Network security

Market value and Dominance

If we assume liquidity is a function of market cap, then Bitcoin should have appeared as a clear-cut winner, but in reality, it is not:

Credit: Messari.io

In distinclion, Ethereum’s market cap remains a lot less compared to BTC, but is apparently gaining momentum propelled by the increasing market dominance:

Credit: Messari.io

Similarities of Ethereum vs Tron

Apart from the differences between Tron and Ethereum, certain similarities also exist. First of all these two are open-source token development platforms and act as smart contract-based crypto tokens. The initial timeline of both Ethereum and Tron may be different. But they launched as a token and then evolved into a crypto coin in the marketplace. When it comes to the architecture, both of them have a three-layer architecture unlike other tokens with smart contracts. Both TRON and Ethereum blockchain platforms share an equal amount of social media, such as Reddit, and GitHub activity. Finally, both of them support P2P decentralized applications and all kinds of dApps platforms.

Volatilities

In terms of volatility, the situation is very straightforward. The higher the market cap of a coin, the lower the volatility:

Credit: Messari.io

In terms of TRON, its volatility has been apparently moving south recently as well, but remains somewhat more “spontaneous” that those of BTC and ETH.

Credit: Messari.io

When it comes to Ether, its recent months’ volatility dump is really spectacular:

Scoring and Conclusion

Based on the above studied criteria, we were able to present the following summary of our findings:

(1- for poor, 10 – for excellent)ETHBTCTRON
Market Cap8105
Market Dominance8106
Market Dominance Momentum1057
Volatility866
Scalability639
Velocity669
Interest on Loans527
Decentralization649
Network Security886
TOTAL:655464

As we see, TRON unexpectedly collected quite a high total score, undershooting Ether by just 1 point. TRON apparently deserves more attention and coverage than it is currently enjoying.