The decentralized financial space is not one many can predict as many projects on the Binance Smart Chain have added new gains within the short period. Recently, some concentration has been diverted from Ethereum to BSC due to the growing gas fees incurred from the former. Experts believe that the Ethereum network’s scalability problems are one of the issues driving many DeFi projects and small-scale investors to other blockchains.
This could become more evident as BSC DeFi records incredible new gains, while most Ethereum projects are in the red. Most of these assets have been decreasing continuously as the weeks go by. This could mean that the network can no longer hold the projects, especially with the traffic, making things tedious for the average trader.
$80 billion worth of assets are locked in DeFi protocols
Despite plans to find solutions to the current issues, many have not been effective, making the network charge very high rates even for low-speed transactions. The Ethereum network is officially launching the next phase of the upgrade, but this might come up later in the year.
A DeFi data analysis firm, DeFi Llama, explained that almost $80 billion worth of assets is locked in numerous decentralized financial protocols. This shows that the industry is growing as it is around twice the market cap of Binance coin, which is currently amongst the top largest crypto assets.
DeFi’s market capitalization is also around one-third of Ethereum, which remains the industry’s second-biggest asset right behind Bitcoin. Some factors are stirring the industry’s total value locked, and one of which is the platforms supporting these projects. However, only about 3 out of the industry’s largest has seen notable growth within the last few weeks.
Some ETH-based project make some gains
The Binance Smart Chain- Native DApps, is currently the industry’s best performer as one of the projects, PanCakeSwap, which added around 30% last week. The 30% is worth around $1.3 billion, showing that the industry’s top protocols are regularly earning.
Another notable gain would be Ellipse Finance, one of the newest projects that have made some attractive new gains. The project has a market cap of around $2 billion and is currently in the top twenty assets in the sector regarding market cap. The project’s rapid growth took many investors by surprise as it became one of the protocols with the largest TVL.
DeFi projects on Ethereum have not made notable gains, but some did manage to perform better than others. Instadapp, which is based on the network, made some new gains as it doubled its TVL quickly. The project added over $1 billion as it doubled its value.
Yearn Finance, a popular DeFi project amongst many people, this protocol added over $800 million to its total value locked. Another project, which increased is Vesper Finance, which has gained over 80%, making its total value over $1 billion, despite launching weeks ago. All the projects have seen an average of 10% this week, a recent data from Messari. The DeFi sector is becoming bigger daily.