Ethereum dominated the TVL in defi on a few platforms and it is closing in at a record $180 billion with the network accounting for the vast majority of it as we are reading more in our Ethereum latest news.
The data includes valuations from Polygon, Solana, Etheruem, FAntom, Terra, Avalanche, Binance, and other DeFi Chains. ETH accounts for $131 billion of the total and makes it the most dominant network so far. The exploding popularity of newcomers showed that the users are starting to expand into other chains. Decentralized finance or DeFi is a recent phenomenon that uses decentralized networks to transform financial products into transparent protocols and all with the added benefit of operating with no intermediaries. It is quite revolutionary as people can access it using the same mechanisms available to bankers but on the blockchain. Using blockchain networks the users can act as exchanges, lenders, or liquidity providers, thus creating a novel way to participate in this sector.
Furthermore, with the higher yields on offer than legacy finance, it is hard to give compelling reasons to stick with the old ways of doing finance. As evidenced by the uptrend in Defi TVL which is an understanding that it is spreading. TVL across all platforms was on a sharp increase since mid-Jul when it stood $103 billion. Defi inflows enabled TVL to reach the previous ATHs of $150 billion achieved before teh crypto crash and it since added an additional $30 billion in two and a half weeks. Ethereum dominated up about three-quarters of the TVL across all platforms with Binance Smart Chian next in line hitting $19 billion or about 11% of the total.
In the rise in popularity and the newcomers like Solana, Terra, and Avalanche, we can see ethereum concerning slightly. Avalanche accounts for over 1% of the total TVL at $2.3 billion. ITS TVL in august stood at $258 million but since increased the value locked by 800% in two weeks. It is almost the same with Solana that captured People’s attention after SOL’s run in which displaced DOGE as the seventh biggest coin by market cap. For comparison, the TVL in Ethereum grew by about 16%. Cardano is set to roll out smart contracts on September 12 and the inevitable expansion of Defi protocols will bring ETH faces another challenger to its dominance.
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