DeFi Protocols on BSC Exploded Over the Past Week

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DeFi Protocols on BSC Exploded Over the Past Week

Mar 29 2021


In brief

  • A lot of DeFi projects have seen losses over the past week, most of them on Ethereum.
  • Interestingly, it appears that Binance Smart Chain houses many of the top-performing protocols.
  • DeFi TVL went up by 10% over the past week, but an average project is losing around 1%.

The DeFi sector continues to grow and expand, although the recent data indicates that the broader sector’s growth is only being pushed by a handful of projects, while others saw losses.

The DeFi sector originated on Ethereum, and while this is the very heart of DeFi, the issues plaguing Ethereum’s network might be one of the bigger contributors to this portion of the sector not performing as well as it used to. In fact, Ethereum-based DeFi has seen quite significant weekly losses. However, this does not mean that the broader DeFi sector is suffering. In fact, DeFi Llama — a well-known data aggregator — recently reported almost $79 billion in assets being locked in decentralized finance protocols.

BSC Might be the Next DeFi Powerhouse

The new data shows that DeFi TVL is almost twice the capitalization of Binance Coin, which currently sits as the third-largest cryptocurrency. At the same time, it represents almost one-third of Ethereum’s market cap. But, it also seems pretty clear that not the entire sector is performing well. In fact, the majority of the growth of DeFi total value locked was only brought in by three of the top 10 largest protocols.

The sector’s growth is being led by Binance Smart Chain-native projects. One of them, known as PancakeSwap, which is the fourth-largest project, added almost 29% to its own TVL, which translates to around $1.3 billion.

Another project performing exceptionally well is Ellipsis Finance, which is a new stablecoin DEX, which attracted $1.9 billion in less than a week since its launch, quickly becoming the 13th-largest protocol in the entire DeFi sector.

There were a few Ethereum projects that saw growth, as mentioned, such as Instadapp, which managed to double its TVL by adding $1.05 billion, as well as, which also managed to make its TVL grow twice in size by increasing it by $850 million. Another gainer is the 18th-largest DeFi protocol, Vesper Finance, which increased its TVL by 84%. This finally allowed it to go beyond $1 billion, reaching this milestone only six weeks after launch.

Despite the fact that the combined TVL of DeFi protocols has grown by 10% over the last week, Messari data indicates that the average DeFi asset has seen a 1% loss. In other words, a few projects are still pushing DeFi up, while the majority of them is experiencing a difficult period.