Key Takeaways
- Total money locked across different DeFi protocols closes in on $200 billion
- Ethereum dominance reducing as developers move to faster and cheaper protocols
- Polygon and Solana among fastest-growing DeFi smart contract networks
DeFi analytical platform DeFi Llama compiled this latest data.
According to the data, the current amount of funds locked in DeFi protocols is around $178 billion.
Ethereum long dominance as the leading DeFi protocol is facing massive competition from rival blockchains.
Ethereum’s scalability and high gas fees are well documented, and developers are porting to the three platforms listed above.
Smart contract platforms like Polygon, Binance Smart Chain has continued to attract new users due to the low transaction fees and scalability potentials.
Binance Smart Chain is currently ranked second in total value locked (TVL) in its DeFi protocols with $20 billion.
This volume is dominated by PancakeSwap, with a TVL of $6.8 billion or around 29% of the total BSC DeFi TVL.
Surprisingly Terra is the third-largest DeFi smart contract network and mainly houses popular stablecoins used in the DeFi ecosystem.
Polygon comes in fourth and has witnessed exponential growth in recent months.
The Ethereum layer 2 solution has recently gotten SushiSwap, AAVE and Compound to migrate their protocols to its blockchain, which could be one of the reasons for its massive rise in TVL.
Solana, meanwhile, is a smart contract blockchain that offers fast transaction speeds and is highly scalable.
Its native token SOL has increased in volume by more than 300% since June, and its DeFi ecosystem is one of the fastest-growing in the blockchain space.
Popular lending protocol AAVE leads the rankings as the most popular DeFi protocol with a TVL of around $14 billion.
This is followed by InstaDApp at $13.2 billion and Curve at $13.09 billion.
What do you think is driving the craze behind the DeFi sector?
