Top 5 Blockchains by TVL in 2024: Eth Dominates DeFi
Vijay Gir23 Dec 20243 min read
If you are into DeFi, you definitely have heard the term “Total Value Locked” before. It’s basically a way to measure how much value is secured within the smart contracts of a blockchain. The higher the TVL, the more adoption a blockchain usually has in DeFi. Here are the top 5 blockchains by TVL that are ruling 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: The King of DeFi
TVL: $121.26 billion
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’s even close to dethroning it. With over a thousand protocols and the highest TVL, it’s the go-to blockchain for DeFi projects. Sure, there’s been a slight dip over the past week, but the monthly growth shows Ethereum isn’t slowing down anytime soon.
Tron and Solana: Solid Players but Not Without Issues
Tron (TRX)
TVL: $8.34 billion
Protocols: 68
Market Cap: $20.97 billion
TVL Change: -0.21% (1 day), -16.02% (1 week), -9.75% (1 month)
Tron is doing pretty well, especially considering it only has 68 protocols. That’s tiny compared to Ethereum, but it still holds second place. Stablecoin operations are its bread and butter, which seems to work for now.
Solana (SOL)
TVL: $6.2 billion
Protocols: 213
Market Cap: $86.01 billion
TVL Change: -0.31% (1 day), -14.66% (1 week), -16.52% (1 month)
Solana’s known for being fast and cheap, but it’s having a rough month. TVL is down quite a bit, and that’s something to keep an eye on. Still, it’s a favorite for developers, and that counts for a lot.
Binance Smart Chain and Arbitrum: Focused on Scalability
Binance Smart Chain (BSC)
TVL: $6.05 billion
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’s compatible with Ethereum, which makes transitioning easier. The recent TVL dip is noticeable, but its monthly growth shows some signs of recovery.
Arbitrum (ARB)
TVL: $3.41 billion
Protocols: 773
Market Cap: $3.11 billion
TVL Change: -0.67% (1 day), -16.36% (1 week), -5.42% (1 month)
Arbitrum is a bit different. It’s 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 get a place in the top 5 blockchains by TVL even though it is the biggest cryptocurrency by market cap. It ranks at 13th by total value locked. Its TVL is just $429.52 million. That’s wild, considering its dominance in the broader crypto space. Interestingly, Bitcoin’s TVL has grown by 52.82% this month. Maybe it’s starting to carve out a new role in DeFi? It’s too early to say, but the numbers are intriguing.
What to Expect
Ethereum isn’t going anywhere, and the competition is heating up. Even though in the whole crypto space Ethereum is at number two with a market dominance of 12.2%, in DeFi, it is the king with 64.90% dominance. Bitcoin’s role in DeFi is evolving, even if it’s nowhere near the top players. If you’re keeping tabs on DeFi trends, watching these blockchains might give you a clue about where the future of finance is heading.
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