he blockchain industry has witnessed exponential growth in the last few years, with new projects emerging every day. One of the most important metrics to measure the success and adoption of a blockchain is the Total Value Locked (TVL). TVL is the total value of assets locked in a blockchain smart contracts, providing a measure of the blockchain’s utility and adoption.
Several blockchains have emerged as the top contenders in terms of TVL in recent years. Ethereum, which has been the leader in this space for years, still holds the top position with a TVL of $25.2 billion, as of November 2023. Other blockchains such as Binance Smart Chain (BSC), Polygon, and Solana have also seen significant growth in TVL, making them the top blockchains to watch out for in the coming years.
With the rise of decentralized finance (DeFi) and non-fungible tokens (NFTs), the TVL metric has become increasingly important in the blockchain industry. Investors and developers are closely watching the TVL of various blockchains to gauge their potential and make informed investment decisions. This article will explore the top blockchains by TVL, providing insights into their growth, adoption, and potential for the future.
Understanding Total Value Locked (TVL)
Total Value Locked (TVL) is a metric that measures the total value of assets locked in a decentralized finance (DeFi) protocol or blockchain network. It is an important metric because it provides a snapshot of the overall health and activity of a blockchain network or DeFi protocol.
TVL is calculated by taking the sum of all assets deposited in a DeFi protocol or blockchain network. These assets can include cryptocurrencies, stablecoins, and other digital assets. The TVL metric is often used to compare the popularity and usage of different blockchain networks and DeFi protocols.
TVL is an important metric because it provides insight into the level of demand for a particular blockchain network or DeFi protocol. A high TVL indicates that there is a high level of demand for the services provided by the network or protocol. This can be an indication of the popularity, adoption, and overall health of the network or protocol.
It’s important to note that TVL is not a perfect metric and should be used in conjunction with other metrics to gain a complete understanding of the health and activity of a blockchain network or DeFi protocol. Factors such as market volatility, network congestion, and user behavior can all impact the TVL metric.
To get a better understanding of the top blockchains by TVL, it’s important to look at the latest data and trends. According to
he blockchain industry has witnessed exponential growth in the last few years, with new projects emerging every day. One of the most important metrics to measure the success and adoption of a blockchain is the Total Value Locked (TVL). TVL is the total value of assets locked in a blockchain smart contracts, providing a measure of the blockchain’s utility and adoption.
Several blockchains have emerged as the top contenders in terms of TVL in recent years. Ethereum, which has been the leader in this space for years, still holds the top position with a TVL of $25.2 billion, as of November 2023. Other blockchains such as Binance Smart Chain (BSC), Polygon, and Solana have also seen significant growth in TVL, making them the top blockchains to watch out for in the coming years.
With the rise of decentralized finance (DeFi) and non-fungible tokens (NFTs), the TVL metric has become increasingly important in the blockchain industry. Investors and developers are closely watching the TVL of various blockchains to gauge their potential and make informed investment decisions. This article will explore the top blockchains by TVL, providing insights into their growth, adoption, and potential for the future.
Understanding Total Value Locked (TVL)
Total Value Locked (TVL) is a metric that measures the total value of assets locked in a decentralized finance (DeFi) protocol or blockchain network. It is an important metric because it provides a snapshot of the overall health and activity of a blockchain network or DeFi protocol.
TVL is calculated by taking the sum of all assets deposited in a DeFi protocol or blockchain network. These assets can include cryptocurrencies, stablecoins, and other digital assets. The TVL metric is often used to compare the popularity and usage of different blockchain networks and DeFi protocols.
TVL is an important metric because it provides insight into the level of demand for a particular blockchain network or DeFi protocol. A high TVL indicates that there is a high level of demand for the services provided by the network or protocol. This can be an indication of the popularity, adoption, and overall health of the network or protocol.
It’s important to note that TVL is not a perfect metric and should be used in conjunction with other metrics to gain a complete understanding of the health and activity of a blockchain network or DeFi protocol. Factors such as market volatility, network congestion, and user behavior can all impact the TVL metric.
To get a better understanding of the top blockchains by TVL, it’s important to look at the latest data and trends. According to CoinGecko, Ethereum is currently the top Layer-1 (L1) blockchain, with $23.0 billion in TVL as of October 2023. It reached its yearly peak TVL of $31.5 billion in April 2023, shortly after the Ethereum Merge (Shapella/Shanghai Upgrade) on April 12, 2023. The top 10 L1 blockchains have 9.6 times more TVL than the top 10 L2 blockchains.
Overall, TVL is an important metric for understanding the health and activity of blockchain networks and DeFi protocols. While it’s not a perfect metric, it can provide valuable insights into the level of demand for a particular network or protocol.
Top Blockchains by TVL
Total Value Locked (TVL) is an important metric for measuring the popularity and adoption of blockchain networks. Here are some of the top blockchains ranked by TVL as of November 22, 2023.
Ethereum
Ethereum is the most popular blockchain network with the highest TVL of $28.0 billion as of October 2023. Ethereum is known for its smart contract functionality, which enables developers to build decentralized applications (dApps) on top of the network. Ethereum’s TVL is expected to continue to grow as more dApps are developed and launched on the network.
Binance Smart Chain
Binance Smart Chain (BSC) is a blockchain network developed by Binance, the world’s largest cryptocurrency exchange. BSC has a TVL of $9.2 billion as of November 22, 2023. BSC is known for its low transaction fees and fast transaction speeds, which make it an attractive alternative to Ethereum. BSC has gained popularity among developers and users alike due to its growing ecosystem of dApps and decentralized finance (DeFi) protocols.
Solana
Solana is a high-performance blockchain network that has gained popularity in recent years due to its fast transaction speeds and low fees. Solana has a TVL of $6.5 billion as of November 22, 2023. Solana’s unique architecture allows it to process more than 65,000 transactions per second, making it one of the fastest blockchain networks in the world. Solana’s TVL is expected to continue to grow as more developers and users adopt the network.
In conclusion, Ethereum, Binance Smart Chain, and Solana are some of the top blockchains ranked by TVL. These blockchain networks have gained popularity due to their unique features and growing ecosystems of dApps and DeFi protocols. As the blockchain industry continues to grow, it will be interesting to see how these networks evolve and compete with each other.
Factors Influencing TVL
The Total Value Locked (TVL) of a blockchain is influenced by various factors that determine the value of assets secured within the blockchain protocol or decentralized application. Some of the key factors that determine TVL include:
Popularity
The popularity of a blockchain is a key factor that determines its TVL. Popular blockchains like Ethereum, Binance Smart Chain, and Solana have a higher TVL compared to less popular ones. This is because more users are attracted to popular blockchains, which translates to more assets being locked within the blockchain.
User Adoption
User adoption is another key factor that determines TVL. Blockchains that have a higher number of users are likely to have a higher TVL compared to those with fewer users. This is because more users mean more assets being locked within the blockchain.
DeFi Applications
Decentralized Finance (DeFi) applications are another factor that influences TVL. Blockchains that have a wide range of DeFi applications are likely to have a higher TVL compared to those with fewer DeFi applications. This is because DeFi applications allow users to lock their assets within the blockchain, which contributes to the overall TVL.
Security
The security of a blockchain is a crucial factor that influences TVL. Users are more likely to lock their assets within a blockchain that is secure and has a low risk of hacks or attacks. Blockchains with poor security are likely to have a lower TVL compared to those with high-security measures in place.
Transaction Fees
Transaction fees are another factor that influences TVL.
Blockchains that have high transaction fees are likely to have a lower TVL compared to those with lower transaction fees.
This is because users are more likely to lock their assets within a blockchain that has lower transaction fees, as it is more cost-effective.
Future Predictions for TVL in Blockchain
The future of Total Value Locked (TVL) in blockchain is promising, with more and more projects being developed and launched every day. As blockchain technology continues to evolve, it is likely that TVL will increase as well.
One trend that is expected to continue is the dominance of Ethereum as the top Layer-1 blockchain by TVL. According to CoinGecko, Ethereum currently has $23.0 billion in TVL as of October 2023, with a yearly peak TVL of $31.5 billion in April 2023. However, other Layer-1 blockchains such as Solana, Binance Smart Chain, and Avalanche are gaining popularity and could potentially challenge Ethereum’s dominance in the future.
Another trend to watch is the growth of decentralized finance (DeFi) on Layer-1 blockchains. According to CoinMarketCap, TVL in DeFi protocols is one metric to measure the value and usage of DeFi on various different smart contracts. As more DeFi projects are developed and launched on different blockchains, TVL in DeFi protocols is expected to increase significantly.
Moreover, with the rise of non-fungible tokens (NFTs), TVL in NFT marketplaces is also expected to increase. As more creators and collectors enter the NFT space, TVL in NFT marketplaces is expected to grow exponentially.
In conclusion, the future of TVL in blockchain is bright, with a lot of potential for growth and innovation. As blockchain technology continues to mature, it is likely that TVL will increase as well.
, Ethereum is currently the top Layer-1 (L1) blockchain, with $23.0 billion in TVL as of October 2023. It reached its yearly peak TVL of $31.5 billion in April 2023, shortly after the Ethereum Merge (Shapella/Shanghai Upgrade) on April 12, 2023. The top 10 L1 blockchains have 9.6 times more TVL than the top 10 L2 blockchains.
Overall, TVL is an important metric for understanding the health and activity of blockchain networks and DeFi protocols. While it’s not a perfect metric, it can provide valuable insights into the level of demand for a particular network or protocol.
Top Blockchains by TVL
Total Value Locked (TVL) is an important metric for measuring the popularity and adoption of blockchain networks. Here are some of the top blockchains ranked by TVL as of November 22, 2023.
Ethereum
Ethereum is the most popular blockchain network with the highest TVL of $28.0 billion as of October 2023. Ethereum is known for its smart contract functionality, which enables developers to build decentralized applications (dApps) on top of the network. Ethereum’s TVL is expected to continue to grow as more dApps are developed and launched on the network.
Binance Smart Chain
Binance Smart Chain (BSC) is a blockchain network developed by Binance, the world’s largest cryptocurrency exchange. BSC has a TVL of $9.2 billion as of November 22, 2023. BSC is known for its low transaction fees and fast transaction speeds, which make it an attractive alternative to Ethereum. BSC has gained popularity among developers and users alike due to its growing ecosystem of dApps and decentralized finance (DeFi) protocols.
Solana
Solana is a high-performance blockchain network that has gained popularity in recent years due to its fast transaction speeds and low fees. Solana has a TVL of $6.5 billion as of November 22, 2023. Solana’s unique architecture allows it to process more than 65,000 transactions per second, making it one of the fastest blockchain networks in the world. Solana’s TVL is expected to continue to grow as more developers and users adopt the network.
In conclusion, Ethereum, Binance Smart Chain, and Solana are some of the top blockchains ranked by TVL. These blockchain networks have gained popularity due to their unique features and growing ecosystems of dApps and DeFi protocols. As the blockchain industry continues to grow, it will be interesting to see how these networks evolve and compete with each other.
Factors Influencing TVL
The Total Value Locked (TVL) of a blockchain is influenced by various factors that determine the value of assets secured within the blockchain protocol or decentralized application. Some of the key factors that determine TVL include:
Popularity
The popularity of a blockchain is a key factor that determines its TVL. Popular blockchains like Ethereum, Binance Smart Chain, and Solana have a higher TVL compared to less popular ones. This is because more users are attracted to popular blockchains, which translates to more assets being locked within the blockchain.
User Adoption
User adoption is another key factor that determines TVL. Blockchains that have a higher number of users are likely to have a higher TVL compared to those with fewer users. This is because more users mean more assets being locked within the blockchain.
DeFi Applications
Decentralized Finance (DeFi) applications are another factor that influences TVL. Blockchains that have a wide range of DeFi applications are likely to have a higher TVL compared to those with fewer DeFi applications. This is because DeFi applications allow users to lock their assets within the blockchain, which contributes to the overall TVL.
Security
The security of a blockchain is a crucial factor that influences TVL. Users are more likely to lock their assets within a blockchain that is secure and has a low risk of hacks or attacks. Blockchains with poor security are likely to have a lower TVL compared to those with high-security measures in place.
Transaction Fees
Transaction fees are another factor that influences TVL.
Blockchains that have high transaction fees are likely to have a lower TVL compared to those with lower transaction fees.
This is because users are more likely to lock their assets within a blockchain that has lower transaction fees, as it is more cost-effective.
Future Predictions for TVL in Blockchain
The future of Total Value Locked (TVL) in blockchain is promising, with more and more projects being developed and launched every day. As blockchain technology continues to evolve, it is likely that TVL will increase as well.
One trend that is expected to continue is the dominance of Ethereum as the top Layer-1 blockchain by TVL. According to CoinGecko, Ethereum currently has $23.0 billion in TVL as of October 2023, with a yearly peak TVL of $31.5 billion in April 2023. However, other Layer-1 blockchains such as Solana, Binance Smart Chain, and Avalanche are gaining popularity and could potentially challenge Ethereum’s dominance in the future.
Another trend to watch is the growth of decentralized finance (DeFi) on Layer-1 blockchains. According to CoinMarketCap, TVL in DeFi protocols is one metric to measure the value and usage of DeFi on various different smart contracts. As more DeFi projects are developed and launched on different blockchains, TVL in DeFi protocols is expected to increase significantly.
Moreover, with the rise of non-fungible tokens (NFTs), TVL in NFT marketplaces is also expected to increase. As more creators and collectors enter the NFT space, TVL in NFT marketplaces is expected to grow exponentially.
In conclusion, the future of TVL in blockchain is bright, with a lot of potential for growth and innovation. As blockchain technology continues to mature, it is likely that TVL will increase as well.
