Top 5 blockchains by TVL in 2024: Eth dominates DeFi

If you like DeFi, you have probably heard the term “Total Value Locked”. It is essentially a way to measure the guaranteed value in smart contracts on a blockchain. The higher the TVL, the more generally a blockchain is adopted in DeFi. Here are the top 5 TVL blockchains that rule the DeFi space: Ethereum, Tron, Solana, Binance Smart Chain (BSC), and Arbitrum.

Together, they dominate the DeFi scene. But here’s a surprise: Bitcoin isn’t even in TVL’s top 10. Weird, right? Let’s see what makes these blockchains work and why Bitcoin is not one of them.

Ethereum: the king of DeFi

TVL: $121.26 billion

Protocols: 1,354

Market capitalization: $391.73 billion

TVL variation: -0.71% (1 day), -17.11% (1 week), +1.09% (1 month)

Ethereum sits comfortably at the top. No one is even close to dethroning him. With over a thousand protocols and the highest TVL, it is the go-to blockchain for DeFi projects. Sure, there was a slight decline over the past week, but the monthly growth shows that Ethereum isn’t slowing down anytime soon.

Tron and Solana: solid players but not without problems

Tron (TRX)

TVL: $8.34 billion

Protocols: 68

Market capitalization: $20.97 billion

TVL variation: -0.21% (1 day), -16.02% (1 week), -9.75% (1 month)

Tron is doing pretty well, especially since it only has 68 protocols. It’s tiny compared to Ethereum, but it still ranks second. Stablecoin operations are its bread and butter, and it seems to be working for now.

Solana (SOL)

TVL: $6.2 billion

Protocols: 213

Market capitalization: $86.01 billion

TVL variation: -0.31% (1 day), -14.66% (1 week), -16.52% (1 month)

Solana is known for being fast and cheap, but the month is tough. TVL is down, and that’s something to watch. Still, it’s a developer favorite, and that counts for a lot.

Binance Smart Chain and Arbitrum: Focused on Scalability

Binance Smart Chain (BSC)

TVL: $6.05 billion

Protocols: 862

Market capitalization: $92.77 billion

TVL variation: -0.96% (1 day), -9.20% (1 week), +0.82% (1 month)

The strength of BSC lies in its scalability. Developers like it because it is compatible with Ethereum, making the transition easier. The recent drop in TVL is noticeable, but its monthly growth shows signs of recovery.

Arbitration (ARB)

TVL: $3.41 billion

Protocols: 773

Market capitalization: $3.11 billion

TVL variation: -0.67% (1 day), -16.36% (1 week), -5.42% (1 month)

Refereeing is a little different. It is not a standalone blockchain but a layer 2 solution for Ethereum. This helps make Ethereum faster and cheaper to use, which is why people like it.

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What about Bitcoin?

Here is the curve. Bitcoin was unable to secure a spot in TVL’s top 5 blockchains even though it is the largest cryptocurrency by market capitalization. It ranks 13th in terms of total value locked. Its TVL is only $429.52 million. This is crazy, considering its dominance in the broader crypto space. Interestingly, Bitcoin’s TVL increased by 52.82% this month. Perhaps it is starting to carve out a new role in DeFi? It’s too early to tell, but the numbers are intriguing.

What to expect

Ethereum is not going anywhere and competition is heating up. Even though in the overall crypto space, Ethereum is second with a market dominance of 12.2%, in DeFi it is the king with a dominance of 64.90%. Bitcoin’s role in DeFi is evolving, although it is far from keeping up with the top players. If you’re monitoring DeFi trends, observing these blockchains could give you an idea of ​​where the future of finance is heading.