Binance Smart Chain BSC is no longer a top 3 DeFi chain by total value locked. According to the available data from DeFiLlama, the distinction now belongs to Fantom, which experienced an over 60% surge in the past two weeks.
Fantom TVL crossed the $12 billion mark despite the bearish nature of the entire criptocurrency market, as per DeFiLlama. That figure has dropped to $11.87 billion, while that of BSC stands at $11.48 billion.
Fantom s run coincides with the cryptocurrency community becoming more interested in shedding its dependence onEthereum due to its high transaction fees and scalability issues. The new block requires only one confirmation before a transaction is written into a block, unlike most of its competitors.
As of last year, the rise of PancakeSwap, a decentralized exchange DEX built on it, led to the control of over 20% of DeFi s TVL.
The dominance has dropped to around 6.05% due to the rise of other DeFi-enabled networks such as Solana, Terra, Avalanche, etc.
As of the time of writing, Ethereum remains in the pole position and controls over 50% of DeFi TVL, although it is a far cry from what it controlled in January of last year. Fantom stands at 6.22%, while Terra's dominance is 8.4%. Avalanche controls 4% of the DeFi market and Solana controls about 3.8% of the space.
The recent surge to prominence of the Fantom network could be linked to a number of reasons, according to a recent report from us.
The report noted that FTM has incentivized developers to build on its network. The developers of Fantom can claim rewards for achieving target levels of TVL on their protocols.
Its vibrant ecosystem currently holds over 100 projects, including Curve Finance, SushiSwap, and others like CREAM Finance, Beefy Finance, and Abracadabra.
The impact of this significant growth in the Fantom network was not doubted by the fact that the native token, FTM, was soaring until last week when the wider market crash affected it.
The native token has lost 40% of the gains it has made and is currently changing hands for around $1.80.