Exciting things are happening across the many blockchains supporting decentralized finance projects. Even though Ethereum remains the top dog by a landslide, it seems Solana might flip Binance Smart Chain shortly. Both chains have opposite TVl changes, and Avalanche is not too far behind either.
Binance Smart Chain Loses DeFi Ground
For the people who have recently paid attention to decentralized finance, exciting things may be on the horizon. Binance Smart Chain is currently the second-biggest ecosystem by TVL at $18.54 billion. A more than respectable amount were it not that this amount is slowly decreasing. In the past week, the network lost 4.65% of its TVL, which is not a good sign. Although such changes can occur at any time, they can shake up the overall rankings a bit.
Various blockchains want to cement their legacy in the DeFi segment, with some projects faring much better than others. Arbitron, Elrond, Waves, and Heco all saw retraces by up to 11.98% of their TVL this week, which is a bit surprising. However,r it also shows that many people either do not trust these “smaller” blockchains or are not interested in exploring alternative options.
Other alternative chains, such as Polygon, note a small gain or a status quo, like Fantom and Tron. Terra also faces a slight TVL setback, although nothing to be overly concerned about. For Binance Smart Chain, the 4.65% setback represents almost $850 million, which is a relatively steep amount. It also puts the chain in reach of both Solana and Avalanche.
More specifically, Solana gained over 10% in DeFi TVL this week, bringing its total to just under $14.8 billion. Avalanche notes an even steeper increase, as its TVL rose by 19.67%. Avalanche now has $12.49 billion in Total Value Locked and continues to note accelerating growth. Both of these blockchains can – assuming their growth continues – overtake Binance Smart Chain in overall TVL rankings before the end of the year.
Keep An Eye On Cronos And Kava
Kava and Cronos are two other blockchains noting impressive momentum in the DeFi TVL rankings. Although they are two sub-$1 billion TVL projects, they both noted excellent performance this past week. Kava saw its Total Value Locked increase by 24.3%, which is a much quicker increase than previous weeks. Its TVL now sits at $671.1 million and may reach that $1 billion mark in the coming weeks.
For Cronos, this week ahs beenr ather spetacular. Although it is unclear why, the network saw its DeFi TVl rise by 66.98%. That is astronomical growth, confirming there is something about Cronos both developers and users appreciate. Sustaining such a growth rate will be nigh impossible, yet it is good to see alternative DeFi ecosystems rise the rankings. There is still much work to do in this industry before it can gain mainstream traction, though.