As the Total Value Locked with on-chain DeFi protocols for layer-1s continue to rise, Ethereum competitors are continuing to make advances in the DeFi space.
The Ethereum Network dominates the DeFi landscape in terms of the number of protocols, which are getting launched on-chain and eventually the total value locked (TVL). The dominance trend with DeFi is further being established by BNB Chain and Fantom.
Layer-1 (L1) protocols are the foundation to Decentralized application ecosystems and the Ethereum network dominates the landscape in terms of the number of protocols launched on-chain and the Total Value Locked (TVL).
What is Layer 1 protocol?
A layer one protocol, also known as an implementation layer, is a system related with a blockchain network’s basic or core architecture. A layer one protocol establishes the rules and settings for the entire network, such as the consensus algorithm, block time, transaction throughput, and so on.
Here are three L1 protocols that are seeing an influx of TVL on their networks as well as growth in their decentralized finance (DeFi) communities.
Waves is a multi-purpose blockchain system that was first released in 2016 and has subsequently gone through multiple iterations on its way to Waves 2.0.
According to data from DefiLlama, the Waves ecosystem has undergone enormous growth in the last month, with the protocol’s TVL jumping from $700.95 million on February 4 to a new record high of $2.77 billion on March 18.
The price of Waves increased 278 percent from a low of $8.17 to a high of $31.04 between Feb. 4 and March 15, indicating that interest in the Waves ecosystem has been growing on several fronts.
Oasis is a secure, privacy-enabled L1 blockchain network that focuses on fast throughput and cheap transaction fees.
When YuzuSwap, the Oasis network’s first decentralized exchange, started in early January and immediately collected more than $160 million in liquidity, the network got off to a fast start in terms of TVL. The TVL, on the other hand, fell sharply through late February, hitting $65.18 million.
Oasis’ TVL has increased to a new high of $194.92 million, thanks in large part to the emergence of the ValleySwap automated market maker protocol, which saw its TVL climb to $125.5 million in March after an initial period of turbulence.
Cosmos and its Inter-blockchain Communication protocol are a third chain having a significant impact on the DeFi sector. Most data sources do not watch the chains in the Cosmos ecosystem in the same way they track Ethereum, hence Cosmos’ TVL is understated.
are all part of the Cosmos ecosystem, and they have seen some of the most significant gains in TVL during the last month.
The aggregate value of these three protocols as well as the value of the main Cosmos-based decentralized exchange, Osmosis, gives the Cosmos ecosystem a total TVL of about $30.25 billion. By TVL, Cosmos is now the second-best blockchain network, trailing only Ethereum.
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