DeFi ecosystem on BSC goes from strength to strength
DeFi yield farm protocol PancakeSwap has seen explosive growth in its user base amidst the frenzy of people searching for DeFi solutions that circumnavigate Ethereum gas fees. The leading automated market maker and yield farm protocol on Binance Smart Chain saw its number of active users increase by 39%.
In the last 7-days, PancakeSwap’s transactions have swelled almost 31% to over 755,000 whilst the number of unique active wallets interacting with the dapps smart contracts has risen by almost 39% to 290,000. These numbers make PancakeSwap the number 2 dapp on DappRadar by the number of users, only surpassed by the game Alien Worlds
Interestingly, we see that PancakeSwap has outperformed one of its main Ethereum competitors Uniswap over the 7-day period. With almost $1 billion more in volume and nearly 50,000 more users, it would appear the student has surpassed their master – this week anyway.
Binance Smart Chain
Ethereums noisy neighbor has been turning up the volume lately and has quickly become a key player in the blockchain industry. As a result, BSC has achieved record-high figures in all metrics during the first quarter of 2021. Furthermore, according to Google Trend worldwide data, BSC has overtaken Ethereum in regards to search volume in Q1 2021.
One important metric in decentralized finance (DeFi) is the Total Value Locked, or TVL. The amount of money users lock away in a protocol is important, because it creates liquidity. Liquidity is required for a decentralized trading platform, because without it trading isn’t possible.
In terms of TVL, at the end of Q1 2021 BSC had around $20 billion whereas Ethereum TVL was 2.5 times higher around $54 billion. On the other hand, several BSC dapps have now surpassed certain prominent Ethereum dapps by TVL. For example, by the end of Q1 2021, Venus had around $6.3 billion in TVL, while Ethereum decentralized finance dapps Uniswap and Compound had $5.7 billion, and $6.1 billion in TVL respectively.
BSC is continuing its expansion and has already generated impressive results. Moreover, further incentivization and an increasing number of newly deployed projects suggest Binance Smart Chain is just getting started.