The Top 5 Largest Blockchains in Crypto Ranked by TVL
Understanding the size and scale of different blockchain networks is essential to gauge the strength and stability of cryptocurrency ecosystems. One way to do this is by tracking the Total Value Locked (TVL) of each blockchain. TVL refers to the total value of assets that are locked in smart contracts on specific blockchain networks. Here's a look at the top 5 largest blockchains in crypto ranked by TVL:
1. Ethereum (ETH)
Ethereum is one of the most popular blockchains in the cryptocurrency space, used for building decentralized applications (dApps) and executing smart contracts. As of September 2021, the TVL of Ethereum is over $82 billion, according to DeFi Pulse. This number is reflective of the growth of the decentralized finance (DeFi) ecosystem on Ethereum, which includes popular protocols like Uniswap, Aave, and Compound. The vast majority of the TVL on Ethereum comes from DeFi applications, but NFT marketplaces and other use cases are also gaining traction on the blockchain.
2. Binance Smart Chain (BSC)
Binance Smart Chain (BSC) is a blockchain network developed by the popular cryptocurrency exchange Binance. It is known for its fast transaction processing times and low fees, which have attracted numerous DeFi projects to launch on the network. As of September 2021, the TVL of Binance Smart Chain is around $17 billion, according to DeFi Pulse. However, the vast majority of this TVL comes from just a few DeFi projects, like PancakeSwap, Venus, and ApeSwap. Despite this, BSC remains a formidable blockchain in the cryptocurrency space.
3. Polygon (MATIC)
Polygon is a layer-2 scaling solution for Ethereum that aims to provide faster and cheaper transactions. It supports Ethereum Virtual Machine (EVM) compatible smart contracts, making it easy for Ethereum developers to port their applications onto the network. As of September 2021, the TVL of Polygon is around $7 billion, according to DeFi Pulse. Polygon has gained popularity in the DeFi space due to its lower fees and faster transaction times compared to Ethereum. Protocols like Aave and Curve have launched on Polygon, contributing to its growing TVL.
4. Solana (SOL)
Solana is a high-performance blockchain designed for decentralized applications and marketplaces. It uses a unique consensus mechanism called Proof of History (PoH) to improve transaction throughput and reduce fees. As of September 2021, the TVL of Solana is around $6 billion, according to DeFi Pulse. While not as established as the other blockchains on this list, Solana has gained popularity due to its impressive transaction processing times and low fees. It has also attracted numerous DeFi projects to launch on the network, like Serum and Raydium.
5. Avalanche (AVAX)
Avalanche is a blockchain platform that aims to provide interoperability between different blockchains and scalability for decentralized applications. It uses a consensus mechanism called Avalanche that enables high throughput and low latency for transactions. As of September 2021, the TVL of Avalanche is around $5 billion, according to DeFi Pulse. Avalanche has emerged as a contender in the DeFi space due to its interoperability with Ethereum and other blockchains, allowing for the easy transfer of assets between networks. Popular DeFi protocols like Aave and Curve have launched on Avalanche, contributing to its growing TVL.
Conclusion
Tracking the TVL of different blockchains can give us insight into the strength and growth of different cryptocurrency ecosystems. While Ethereum remains the clear leader in terms of TVL, other blockchains like Binance Smart Chain, Polygon, Solana, and Avalanche are quickly gaining traction in the DeFi space. As the crypto industry continues to evolve, it will be interesting to see how these different blockchains stack up against each other in terms of TVL and overall usage.
