Nearly $80 Billion Locked in DeFi, Ethereum-Based Protocols Losing to Binance Smart Chain

According to data from DeFi Llama, the total amount locked in DeFi is at a record $79 billion. This amount is well above the total market cap of nearly all cryptocurrencies with the exception of the top two digital assets. The Ethereum network still holds roughly half of this. Defi Pulse revealed that in March, Ethereum had between $38 billion and $45 billion locked. Data further show that combined, there was a 10% increase in TVL. But despite some Ethereum protocols performing well, they have rather been overshadowed by the performance from the Binance Smart Chain (BSC).

The Value of Funds Locked in DeFi Is Growing

One of the best performers on Binance Smart Chain in the last few weeks has been PancakeSwap which has around $6 billion in locked finance. Notably, $1.3 billion of this has been added in the last week. It has further been a top performer on the crypto market after more than doubling in the last 30 days. Uniswap, which is an Ethereum-based network, has also been positive but not quite to a similar scale. In the last 30 days, the token has added nearly 50%. Yearn Finance, another Ethereum-based asset, has also seen a significant increase, adding $850 million in TVL over the last couple of days.

Though Binance Smart Chain is relatively new, it is steaming ahead. It is particularly taking advantage of Ethereum which has slowed in recent months.

Is Binance Smart Chain Ready to Overtake Ethereum?

The Binance Smart Chain has in recent weeks led the DeFi market. Its heavy contribution to attract both protocols and investor has seen the industry hit the record $79 billion in total value locked (TVL). BSC has capitalized on Ethereum’s current inability to lower transaction fees and improve speed. Most recently, the 1inch DeFi protocol left the Ethereum network for Binance. And it is not Ethereum alone falling to BSC, a few days ago EOS lost its leading DeFi protocol, Effect Network, to Binance. The CEO of Effect Network explained that they had over the last three years noted the Blockchain’s appealing features.

Ethereum is set to upgrade before the end of the year. The new upgrade is set to bring new features and address persistent problems. But the upgrade is still months away and BSC taking up the market at an unprecedented rate. By its full launch could it be too late for Ethereum? At this rate, it is hard to argue otherwise.