Even though most of the DeFi activity occurs on Ethereum, other blockchains shouldn’t be overlooked. The total value locked across different ecosystems creates exciting developments and opportunities. However, which chain will rival Ethereum – if any ever can – remains unclear at this point. 

Ethereum DeFi TVL Remains Astronomical

Contrary to what some sources may report, the DeFi TVL on Ethereum is much higher than anticipated. Currently, the network has close to $123 billion in total value locked. An astronomical amount, indicating how powerful this network can be for decentralized finance products and services. That is even with high transaction fees and slow transactions at times.

The inefficiencies of Ethereum are well-known, yet no other blockchain comes close. That is not for lack of effort, as dozens of blockchains provide DeFi functionality today. However, it is challenging to compete with an industry leader. If more bridges are developed, that situation may change. Tapping into other ecosystems can prove beneficial in multiple ways. Running DeFi applications on one chain only is no longer a viable approach.

-Advertisement-

Sourc:e: Coin98

In the current landscape, Binance Smart Chain is the closest “rival” to Ethereum for DeFi TVL. With $37 billion in locked value, BSC certainly puts up a valiant effort. That number is likely to increase further as more solutions are deployed or migrate to this ecosystem. Speed, efficiency, and affordability are still crucial to decentralized finance, and Ethereum can’t always provide those.

In third place, we find Tron. That may surprise many people, as Tron’s ecosystem isn’t mentioned that often in decentralized finance. However, several major projects reside on the blockchain, managing a combined $11.6 billion in TVL. So it is interesting to see how Tron seems to remain high up in these rankings without too many people batting an eye or mentioning it. 

What About The Other Blockchains?

As other blockchains try to capture a share of DeFi TVL, competition will keep heating up for some time. Solana is in a good place, although Terra isn’t that far behind. Both ecosystems note $8.94 billion and $8.16 billion in TVL, respectively. A strong leader over Polygon’s $4.55 billion and Avalanche with $3.05 billion/ Arbiturum is making a move at $2.7 billion, indicating a growing demand for alternatives to Ethereum. 

Beyond these well-known ecosystems, dozens of other blockchains throw their hats into the ring. However, their success varies significantly. With a TVL ranging from $1.25 billion to just $36, it is evident there is more work to do. However, it is good to see such a diverse decentralized finance ecosystem. Whether all of these blockchains will succeed in their mission is a different matter.