TVL's Top 5 Blockchains in 2024: Eth Dominates DeFi

If you're into DeFi, you've definitely heard the term “Total Value Locked” before. It is basically a way to measure how much value is secured within blockchain smart contracts. The higher the TVL, the greater the adoption of blockchain in DeFi. Here are the top 5 blockchains by TVL 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 the top 10 by TVL. Weird, right? Let's dive into what makes these blockchains tick and why Bitcoin isn't one of them.

Ethereum: King of DeFi

TVL: $121.26 trillion

Protocols: 1,354

Market cap: $391.73 billion

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

Ethereum sits comfortably at the top. No one even comes close to destroying it. With over a thousand protocols and the highest TVL, this is the blockchain for DeFi projects. Yes, there has been a slight decrease over the last week, but the monthly growth shows that Ethereum is not slowing down anytime soon.

Tron and Solana: Solid Players but not without Issues

through (TRX)

TVL: $8.34 trillion

Protocols: 68

Market cap: $20.97 billion

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

Tron is doing very well, especially since it only has 68 protocols. That's small compared to Ethereum, but it's still in second place. Stablecoin operations are his bread and butter, which seems to be working for now.

Solana (Sun)

TVL: $6.2 trillion

Protocols: 213

Market cap: $86.01 billion

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

Solana is known for being fast and cheap, but he's having a rough month. TVL is down to a point, so that's something to keep an eye on. However, it is preferred by developers, and that counts for many.

Binance and Arbitrum Smart Chain: Focus on Scalability

Binance Smart Chain (BSC)

TVL: $6.05 trillion

Protocols: 862

Market cap: $92.77 billion

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

BSC's strength lies in its scalability. Developers like it because it is compatible with Ethereum, which makes it easier to transfer. The recent decline in TVL is evident, but its monthly growth shows some signs of recovery.

Arbitrage (ARB)

TVL: $3.41 trillion

Protocols: 773

Market cap: $3.11 billion

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

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

What about Bitcoin?

Here's the curveball. Bitcoin could not find a place in the top 5 blockchains by TVL even though it is the largest cryptocurrency by market cap. He ranks 13th in terms of total value locked up. Its TVL is just $429.52 million. That's wild, considering its dominance in the broader crypto space. Interestingly, TVL Bitcoin has grown by 52.82% this month. Maybe he's starting to carve a new career​​​​​​in DeFi? It's too early to say, but the numbers are interesting.

What to expect

Ethereum is not going anywhere, and the competition is heating up. Even though in the entire crypto space Ethereum is number two 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 changing, even if it is nowhere near the main players. If you're following DeFi trends, looking at these blockchains might give you an idea of ​​where the future of finance is headed.