Ethereum Maintains its Status as the Leading DeFi Chain Despite Dropping TVL by 7.93%

With the growth of the DeFi ecosystem, it has become essential to measure its achievement through metrics like TVL

Top 10 DeFi Chains by TVL

The decentralized finance (DeFi) protocols have redefined the financial world by allowing operations of various services without the involvement of traditional intermediaries.

As the DeFi ecosystem grows, it’s crucial to measure its success through metrics like total value locked (TVL), which calculates the total amount of assets locked in each protocol, forming this virtual universe. This metric showcases which protocols are trusted and popular, highlighting their ability to attract and secure assets.

In today’s data by DefiLlama highlighted the top 10 DeFi protocols, analyzing changes within the DeFi market.

Top 10 DeFi chains by TVL

The table above shows the top 10 DeFi chains by TVL. As we can see, Ethereum is still the biggest DeFi chain with $46.89 billion in TVL despite dropping by 7.93% over the past month.

The decrease in ETC’s share of TVL might be linked to the rising competition within the DeFi sector where alternative blockchains like Solana, Binance Smart Chain (BSC), and TRON are attracting more users with their faster processing times and lower transaction fees. The TVL share of SOL, BSC, and TRX increased 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 importance as the main network for DApps.

Solana (SOL)

With a TVL of $7.37 billion, SOL is the second biggest and most popular project in the DeFi. Solana’s TVL increased 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 rapidly expanding DEX trading activities and increased daily transactions are other catalysts for its network expansion.

Binance Smart Chain (BSC)

Third on the list is BSC, which currently holds a $5.54 billion TVL, making it the third-most-popular DeFi protocol. Binance Smart Chain has seen 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 users opt for the blockchain for faster transaction speed and lower gas fees.

Tron (TRX)

Coming in fourth is Tron with a $4.91 billion TVL, an increase of 5.15% over the past month. This shows that the Tron ecosystem is expanding rapidly. Its DeFi market expansion is being driven by the increasing demand for TRX, a native token powering the Tron blockchain, which is used to pay for gas fees.

Moreover, the surge of DEX volume to nearly $129 million in the previous day alone highlights Tron network’s expansion. The protocol has also seen 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 become the preferred network for stablecoins transactions, mainly USDT.

Bitcoin (BTC)

Bitcoin came in fifth on the list with a $3.73 billion TVL. But its DeFi is facing pressure, with its share of TVL dropping by 48.63% over the past month. This decrease in momentum showcases the difficulties 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. Now, 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 cheaper fees and faster transaction speed, hence pulling liquidity away from BTC and ETH. Despite the drop, Bitcoin restaking service continues booming in the DeFi, a major factor sustaining its TVL.

Others

Other protocols that stand out due to their excellent DeFi TVL include Base, Berachain, Arbitrum, Sui, and Avalanche. Base came in sixth on the list with a $2.84 billion TVL, dropping by 7.52% over 30 days.

While Berachain came in seventh with a $2.5 billion TVL, it was followed by Arbitrum, which had a $2.12 billion TVL. Sui and Avalanche came in ninth and tenth with $1.22 billion and $1.21 billion TVL, respectively.

Although the data highlighted significant changes in the DeFi world, market value as measured by TVL shows massive adoption and confidence in these projects.