If you're curious about the current state of decentralized finance (DeFi) and wondering how Ethereum stacks up against other blockchains, I've got some insights for you. One great way to compare them is by looking at the Total Value Locked (TVL) on Defillama, a platform that tracks DeFi activity across various blockchains. And if you take a look, you'll see that Ethereum's TVL is head and shoulders above the rest. In fact, it's safe to say that Ethereum has no real competitor in the world of DeFi right now. Want to know more? Keep reading!
Defillama provides a comprehensive overview of the TVL on various chains including Ethereum, BINANCE Smart Chain, Polygon, Solana, and others. Here is an analysis of the TVL evolution on each chain based on the data available on Defillama:
- Ethereum has been the leading chain in the DeFi space and has maintained the highest TVL for a long time. The TVL on Ethereum has grown exponentially over the past few years. It started at around $1 billion in 2019 and reached its peak at around $157 billion in May 2021. However, the TVL on Ethereum has been declining since then first of all due to the bear market and FTX collapse, and then due to high gas fees and increased competition from other chains. As of April 2023, the TVL on Ethereum is around $55 billion.
- Binance Smart Chain (BSC) has gained a lot of popularity due to its low transaction fees and fast transaction times. The TVL on BSC has grown rapidly since its launch in 2020, reaching a peak of around $50 billion in May 2021. However, the TVL on BSC has also been declining since then due to bear market and the increased competition from other chains. As of April 2023, the TVL on BSC is around $10 billion.
- Polygon is another popular chain that has gained a lot of traction in the DeFi space due to its low transaction fees and fast transaction times. The TVL on Polygon has grown rapidly since its launch in 2020, reaching a peak of around $14 billion in May 2021. However, the TVL on Polygon has been relatively stable since then, hovering around $8-10 billion. As of April 2023, the TVL on Polygon is around $9 billion.
- Solana has also gained a lot of attention in the DeFi space due to its fast transaction times and low fees. The TVL on Solana has been growing rapidly since its launch in 2020, reaching a peak of around $12 billion in September 2021. However, the TVL on Solana has been declining since then, due to the recent market downturn, FTX collapse and also to the multiple network outages faced by Solana. As of April 2023, the TVL on Solana is only around $3 billion.
In summary, the TVL on various chains has seen a lot of growth and fluctuations over the past few years. While Ethereum has been the leading chain in the DeFi space for a long time, other chains such as BSC, Polygon, and Solana have gained a lot of popularity due to their unique features and lower transaction fees, but are still far away from Ethereum.
Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.
Please find below some referral links to earn a bit more crypto...
- Fountain: get paid to listen
- Sweatcoin: get paid to walk
- Plutus: earn $10 PLU
