- Ethereum’s DeFi throne was shaken by the newly arrived Binance Smart Chain. Looking at the top 5 DeFi dapps ranked by volume in the last 24 hours, it turns out that 3 Binance dapps, Venus, Autofarm and PancakeSwap are in the first, second and fifth, respectively. The combined volume of almost $ 29 billion, compared to the combined volume of DYdX and Compound of approximately $ 2.3 billion, shows the split more clearly.
Ethereum’s DeFi throne was shaken by the newly arrived Binance Smart Chain. Looking at the top 5 DeFi dapps ranked by volume in the last 24 hours, it turns out that 3 Binance dapps, Venus, Autofarm and PancakeSwap are in the first, second and fifth, respectively. The combined volume of almost $ 29 billion, compared to the combined volume of DYdX and Compound of approximately $ 2.3 billion, shows the split more clearly.
Moreover, the performance of these relatively new Binance Smart Chain dapps looks even more impressive compared to Ethereum’s leading exchange Uniswap, whose 24-hour volume is just under $ 1 billion.
Going back to this time last year, the story was very different. Ethereum really dominated the DeFi landscape and the DeFi rankings on DappRadar, and it is refreshing to see such a serious effort from a challenger, and all signs indicate that the BSC is just getting started. Interestingly, DappRadar saw this on the horizon last year.
Of the 71 decentralized applications (dapps) currently running on Binance Smart Chain, 52 are in the DeFi category and 6 are in the stock market category. More than 80% of the dapps currently in BSC are focused on DeFi services.
How did that happen?
Binance Smart Chain has incubated the DeFi ecosystem since its launch and is clearly trying to go hand-in-hand with the Ethereum ecosystem while offering lower costs to users. This is a strategy that seems to work for Binance’s benefit.
Several BSC dapps have seen impressive growth recently. In January 2021, the two DeFi dapps were the biggest contributors: PancakeSwap and Venus. These accounted for $ 1 billion and $ 14 billion, respectively, of the $ 15 billion total transaction volume in January 2021. Venus dominated most of the volume in January and continues to rise in February 2021. According to DappRadar rankings, Venus is now the biggest dapp in terms of transaction volumes in the last 7 days.
Another DeFi dapp that is currently featured is Autofarm. Autofarm is a decentralized finance app that climbs second in the overall DappRadar dapp ranking in all blockchains and categories, surpassing Ethereum-based competitors. Ironically, another BSC DeFi dapp is the second after Venus. Autofarm has generated over $ 40 billion in volume in the last 7 days and usage has increased by almost 170%.
Moreover, looking at the active user base of the best blockchains, BSC has already outpaced WAX and EOS in January. While compiling the 2021 report, Binance Smart Chain has more than 50,000 active wallets per day, which is only 18,000 less than Ethereum.
Binance Smart Chain significantly extends the functionality of the original Binance Chain and bridges the gap between blockchains. It means that the community surrounding Binance and CZ has relatively smooth and successful entry into the blockchain and DeFi world.
It probably shouldn’t be that hard to lure people into a service that offers the same services as Ethereum DeFi for a lower fee and with faster transactions. The real test will be the longevity of successful operation of Binance Smart Chains, and if they can now retain these users and more importantly, even if the gas fees on Ethereum drop, they can gain brand loyalty.
Another important factor will be the developer community. Binance Smart Chain is extremely proactive in making migration of dapps from Ethereum to BSC easy and fast, encouraging developers to migrate and encourage users to try copies of their favorite services on the Binance Smart Chain.