DeFi protocols have redefined the financial world by allowing operations of various services without the involvement of traditional intermediaries.
With the growth of the DeFi ecosystem, it has become essential to measure its achievement through metrics like TVL, which gauges the entire quantity of assets locked in each protocol that constitutes this virtual ecosystem. This metric shows reliable and popular protocols and their capability to attract and safeguard assets. Today’s data by DefiLlama highlighted the top 10 DeFi protocols, analyzing shifts within the DeFi market.
Top 10 DeFi chains by TVL
Ethereum
Ethereum has continued to maintain its status as a leader in the DeFi landscape. As per the latest data from DefiLlama, Ethereum currently holds a whopping $46.89 billion in TVL, dropping by 7.93% over the past month. This drop signals rising competition within the DeFi sector where alternative blockchains like Solana, Binance Smart Chain (BSC), and TRON are attracting more users with their more rapid processing times and lower transaction fees. The TVL share of SOL, BSC, and TRX rose by 6.51%, 3.25%, and 5.15%, respectively over the same period. However, ETH still controls a bigger DeFi market share, showcasing its continued significance as the key network for DApps.
Solana
With a TVL of $7.37 billion, SOL is the second largest and most popular project in the DeFi. Solana’s TVL has risen by 6.51% over the past month to its current $7.37 billion TVL. Some of the factors that have led to this surge is the tremendous growth of meme coin trading in the network. Solana’s rising DEX trading activities and expanded daily transactions are other catalysts for its network expansion.
Binance Smart Chain (BSC)
Third on the list is BSC, which currently controls a $5.54 billion TVL, making it the third-most-popular DeFi protocol. Binance Smart Chain has gained robust momentum in recent weeks, registering an increase of 3.25% in TVL in the past month. This surge comes as DEX trading volume and speculative activity on the network continue to rise. The rise in trading activity shows increased adoption of BSC’s ecosystem, as more customers choose the blockchain for faster transaction speed and lower gas fees.
Tron
Tron took fourth place with a $4.91 billion TVL, an increase of 5.15% over the past month. This shows that the Tron ecosystem is seeing rapid growth. Its DeFi market expansion is propelled by the increasing demand for TRX, a native token powering the Tron blockchain, which is being utilized to pay for gas fees.
Furthermore, the surge of DEX volume to almost $129 million in the previous day alone highlights Tron network’s expansion. The protocol has also recorded an increase in daily active addresses by over 2.6 million, which comes at a time when USDT stablecoin trading activity has massively increased on the platform. Over recent years, Tron has emerged as the preferred network for stablecoins transactions, majorly USDT.
Bitcoin
Bitcoin clinched the fifth spot with a $3.73 billion TVL. However, its DeFi is facing pressure, with its share of TVL dropping by 48.63% over the past month. This decrease in momentum reflects challenges in maintaining its market share.
Over the past seven days, Bitcoin was the third in the DeFi market in terms of TVL, following Solana and Ethereum. Currently, it has dropped to number 5.
The decline suggests that other faster blockchains like SOL, BSC, and TRX continue to attract users due to their affordable fees and rapid transaction speed, therefore drawing liquidity away from BTC and ETH. Despite the drop, Bitcoin restaking service continues booming in the DeFi, a major catalyst sustaining its TVL.
Others
Other protocols that stand out due to their outstanding DeFi TVL include Base, Berachain, Arbitrum, Sui, and Avalanche. Base took the sixth position with a $2.84 billion TVL, a decrease of 7.52% over the past 30 days.
While Berachain settled on position seven with a $2.5 billion TVL, it was followed by Arbitrum, which had a $2.12 billion TVL. Sui and Avalanche occupied positions 9 and 10 with $1.22 billion and $1.21 billion TVL, respectively.
Although the data highlighted significant shifts in the DeFi world, market value as gauged by TVL shows extensive adoption and market confidence in these projects.
