Top Blockchains by TVL Total Value Locked is a key indicator of a blockchain’s performance in the fast-growing field of decentralised finance (DeFi). It illustrates the degree of confidence and involvement in the blockchain’s ecosystem by reflecting the entire amount of capital kept within its smart contracts. A more strong and active network is indicated by a greater TVL. TVL’s rankings of the top 10 blockchains this week provide important information on the condition of the cryptocurrency industry.
Ethereum
With a TVL of over $71.5 billion, or more than 57% of the industry, Ethereum is still the market leader in the DeFi space. Ethereum, the first blockchain to use smart contracts, is still in the lead because of its extensive network of decentralised apps (dApps) and protocols. Many of the largest DeFi projects are housed on the platform, such as yield farming protocols, lending platforms, and decentralised exchanges (DEXs). Ethereum’s scalability features, like as layer-2 rollups, have also helped it keep its top spot among TVL’s blockchains.
Solana (SOL)
Solana ranks second with about $9.5 billion TVL. It is a popular blockchain for DeFi applications due to its fast transactions and low expenses. Scalability and a good consensus system have attracted developers and consumers seeking alternatives to Ethereum’s increased fuel prices. Solana’s popularity in decentralised banking, gaming, and NFT marketplaces has boosted its TVL.
TRX (TRON)
Third place goes to TRON, which has a TVL of about $7.8 billion. TRON has gradually moved into the DeFi space after initially concentrating on decentralised content distribution. The blockchain is a popular option for financial applications because of its quick processing times and cheap transaction fees. TRON’s increasing TVL can be attributed to its considerable traction in stablecoin-based DeFi protocols, particularly in Asia.
Bitcoin
With $7 billion trapped in DeFi protocols, Bitcoin—once seen as a store of value—now ranks fourth in TVL. Wrapped tokens, like Wrapped Bitcoin (WBTC), which enable BTC to be used on other blockchains like Ethereum and Binance Smart Chain, have been the main method by which Bitcoin has been integrated into DeFi. As a result, Bitcoin’s TVL has increased and its holders are now able to engage in yield farming, lending, and other DeFi activities.
BSC, or BNB Smart Chain
BNB Smart Chain has a TVL of roughly $5.9 billion, placing it in fifth place. BSC, which was introduced by Binance, offers an Ethereum substitute that is less expensive while still being compatible with the Ethereum Virtual Machine (EVM). Because of this, DeFi developers looking for less transaction fees frequently choose it. PancakeSwap, one of the biggest decentralised exchanges, is one of the several DeFi technologies that call BSC home.
Base Base is a layer-2
scaling solution that Coinbase introduced. With almost $3.9 billion locked in its ecosystem, it has quickly risen in the TVL rankings. Numerous DeFi projects have been drawn to it because of its emphasis on offering scalable and secure infrastructure. The quick expansion of Base demonstrates the growing need for layer-2 solutions that enhance transaction speeds and reduce expenses on the Ethereum network.
Arbitrum
Built on top of Ethereum, Arbitrum is another layer-2 scaling solution with a TVL of roughly $2.5 billion at the moment. By shifting transaction processing to a secondary layer, it improves Ethereum’s scalability while lowering petrol costs and congestion. Arbitrum has seen the deployment of numerous well-known DeFi protocols, such as Uniswap and Aave, which has increased its TVL.
Avalanche (AVAX)
Avalanche has a TVL of about $1.13 billion, placing it in seventh place. It has drawn notice for its scalable, fast infrastructure and creative method of creating unique blockchain networks, or subnets. Avalanche’s expanding ecosystem and TVL can be attributed to its emphasis on DeFi, NFTs, and enterprise use cases. Top Blockchains by TVL Developers also choose it because of its compatibility with Ethereum-based projects.
MATIC (Polygon)
With a TVL of roughly $1.2 billion, Polygon is an Ethereum layer-2 scaling solution. One of the most popular platforms for DeFi and gaming apps is Polygon, which is renowned for lowering petrol costs and speeding up transactions. Because of its multi-chain strategy, it is a major contributor to the interoperability of other blockchain networks.
Sui
Sui is a Layer 1 blockchain for scalability, security, and low-latency applications. It developed by Mysten Labs, addresses blockchain issues including transaction speed and network congestion, making it ideal for dApps and digital assets. It uses “Narwhal and Tusk,” a consensus technique that decouples data availability and transaction ordering for faster throughput and parallel processing.
Important Takeaways for Top 10 Blockchains
The top 10 blockchains have a TVL of approximately $125 billion, and market activity increased somewhat this week. Some noteworthy patterns: Ethereum’s dominance illustrates its ecosystem’s strength despite newer blockchains. Layer-2 solutions like Base and Arbitrum are becoming more important as Ethereum scales. Solana, TRON, and Avalanche are gaining popularity by distinguishing itself from Ethereum. Bitcoin in DeFi shows that the world’s largest cryptocurrency has uses beyond storage.
For More: Babylon Labs & Fiamma Revolutionizing Bitcoin in DeFi
Conclusion
Ethereum is still at the top, but other platforms are catching up fast by providing creative answers to the scalability and usability issues facing the sector. The competition between blockchains will increase as more individuals and organisations use DeFi, which could change the rankings in the upcoming months. Top Blockchains by TVL Monitoring TVL developments can yield important information on the state and expansion of the larger blockchain ecosystem.
