There has been a churn in the rankings of the DeFi chains based on their total value locked (TVL). Before the churn, Binance Smart Chain (BSC) occupied third place. That place has now been taken by Fantom. Fantom moved up in TVL owing to a 60% rise.
Of late, the crypto market has witnessed a bearish outlook. Despite that, Fantom’s TVL rose above $12 billion. Finally, Fantom’s TVL settled at $11.87 billion against the TVL of BSC at $11.48 billion.
Fantom’s rise came at a time when the crypto market was trying to overcome its dependence on Ethereum. The dependence on ethereum was sought to be reduced due to the high transaction fee and limitations regarding scalability. Fantom, meanwhile, requires a single confirmation for a transaction to be written within a block.
Not that far back, BSC accounted for more than 20% of DeFi’s TVL. This dominance was chiefly owing to the rise of the DEX – PancakeSwap – that was built on BSC.
Ethereum occupies the top spot by share of overall TVL with a 50% share. The share in the overall TVL of BSC has since fallen to 6.05%. This fall is mainly owing to the rise of other chains enabled by DeFi, such as Terra, Solana, Avalanche, etc. Terra accounts for 8.4%, Solana 3.8% and Avalance 4%.
Fantom’s rise can also be attributed to the incentives that it has offered developers to build on its network. Also, at present, Fantom supports over 100 projects. This rapid growth in Fantom’s TVL is also seen in its native token – FTM. Of late, FTM’s price has also seen a steep rise before the overall crash in the crypto market affected it. The overall crash caused FTM to fall to $1.80, which meant that it had lost 40% of the gains that it had made earlier.