Blockchains enable the internet to store and exchange value without the need for a centralised middleman. They are the cryptocurrency’s technical engine, the Decentralized Web, and its consequence, decentralised finance (DeFi). In this post, we rank the five biggest blockchains in terms of total locked valuables. Total Value Locked (TVL) is a statistic used to quantify the amount of value, generally in dollars, that is locked in the form of staking or in liquidity pools of DeFi projects, and it may be highly useful in assisting the market. The worth and potential for gain (or depreciation) of connected tokens are determined by a cryptocurrency investor.
Unlike the specific metrics of each DeFi protocol, the chain metre takes into consideration the total locked value of each project (or protocol) inside each of the blockchains.
This is not to say that the quantity of native tokens locked, and hence the MCap/TVL ratio, should be regarded with more scepticism than when examining each project separately. We will look at the blockchain technologies Ethereum (ETH), Binance Smart Chain (BNB), Terra (LUNA), Avalanche (AVAX), and Solana in turn (SOL).
1- Ethereum (ETH)
Vitalik Buterin, a Russian-Canadian engineer, created the Ethereum blockchain system. Blockchain is a technology that enables information to be stored and transferred in a transparent, secure, and decentralised manner. Ethereum, the second most valuable blockchain behind Bitcoin, was launched in 2015 and facilitates the creation of decentralised applications known as Dapps.
It differs from Bitcoin in that it focuses only on peer-to-peer payment. Tens of thousands of Ethereum developers are creating applications for the banking, entertainment, cloud, and real estate sectors. The Ethereum blockchain development community is one of the world’s biggest and most active.
With $184.28 billion TVL over 375 protocols, Ethereum is the top blockchain. With $450.22 billion in market capitalization, it is placed second. Its Mcap/TVL ratio is 2.89927, implying that the capitalization of ETH is over three times the entire amount invested in the network.
The Curve Decentralized Platform (CRV) is the primary protocol. It has a TVL of $22.4 billion and a Mcap/TVL ratio of 0.09024. It has a 12.16 percent market share over other blockchain technologies.
2- Binance Smart Chain (BNB)
Binance Smart Chain (BSC) is a blockchain that runs alongside Binance Chain. Unlike the Binance Chain, BSC supports smart contract development and is compatible with the Ethereum Virtual Machine (EVM). Its goal is therefore to maintain the Binance Chain’s transaction speed while bringing smart contracts into its ecosystem.
In reality, the two blockchains work in tandem. It is worth mentioning that BSC is not a solution for layer two or off-chain scalability. It is, in fact, a self-contained blockchain that could function independently of the Binance Chain. Having said that, the two chains have a striking visual similarity. Discover the difference between Binance Smart Chain and Binance Chain.
Binance Smart Chain is the second most valuable chain in terms of total value locked, with $20.68 billion TVL split among 246 protocols. Binance Coin is the third most valuable cryptocurrency, having a market value of $88.63 billion. It has a Mcap/TVL ratio of 5.24438, indicating that the BNB capitalization is more than 5 times the total amount invested in the network.
PancakeSwap, a decentralised platform, serves as the primary protocol (CAKE). It has a TVL of $8.03 billion, a Mcap/TVL of 0.3806, and a 38.83 percent market share over other blockchain protocols.
3 – Terra (LUNA)
Terra is the third most valuable blockchain in terms of total value locked. It has a TVL of US$18.29 billion based on just 14 procedures. It is the chain with the fewest procedures among the top five, and it consistently achieves a good investment value.
Terra has a market value of US$31.38 billion, placing it ninth in the world. Its Mcap/TVL index is 1.73468, indicating that LUNA’s capitalization is less than twice as large as the total amount invested in the network. Be the lowest of the five indexes.
Anchor (ANC) is the primary procedure. It has a Mcap/TVL of 0.07695 and a TVL of $8.51 billion. It outnumbers all other blockchain protocols by 46.53 percent.
4 – Avalanche (AVAX)
With $14.31 billion TVL over 117 protocols, Avalanche is the fourth biggest blockchain by total value locked.
With a market value of $25.94 billion, Avalanche (AVAX) is ranked 11th. It has an MCap/TVL ratio of 2.16989. This means that AVAX’s capitalisation is about double the entire amount invested in the network. It has the second lowest rate of any of the five.
Aave (AAVE) is the primary protocol. It has a TVL of $3.16 billion and a Mcap/TVL of 1.06539, giving it a 22.08 percent lead over other blockchain systems. To be the primary protocol of the major MCap/TVL in this industry, among others.
5 – Solana (SOL)
Solana is another large blockchain that we can have. With a TVL of $11.59 billion spanning just 41 procedures, it ranks fifth in total value locked.
Solana is the fifth most valuable company in the world, having a market value of US$54.16 billion. It has a 4.69662 Mcap/TVL ratio. This means that SOL’s capitalisation is more than four times bigger than the entire amount invested in the network. As with BNB, this might signal an overvaluation of the token.
Raydium (RAY) is the primary procedure. It has a TVL of $1.59 billion and a Mcap/TVL of 0.34154, giving it a 13.59 percent lead over other blockchain protocols.