This is why whales are even more interested in the Ethereum network
The crypto industry has exploded a number of different products over the past year, particularly NFT Ethereum . However one research recently discovered by DappRadar that while the popularity of NFT has taken the industry by storm, it cannot be compared to the value created by DeFi.
The DeFi space attracted more than 590,000 daily active unique wallet addresses in the third quarter, reaching a total blocked value (TVL) of $ 178 billion. While the Ethereum-based DeFi is still dominant, other competing networks such as Binance Smart Chain (BSC) are also enjoying great success.
The main contributor to locked-in value is borrowing dApps, thanks to whale activity.
The report also shows that Ethereum-based dApps are seeing higher whale activity than BSC-based dApps. According to DappRadar, the average transaction size on Aave (on Ethereum) reached USD 461,000 in the third quarter, while Alpaca Finance (on BSC) reached USD 72,000.
“Although the gas fee mechanism has changed thanks to the London hard fork, Ethereum is still a whale-friendly ecosystem.”
Although BSC offers cheaper fees, usage on the Ethereum network is still high. Projects like MakerDAO, Aave, and Compound run DeFi for Ethereum users.
Regardless of whether MakerDAO is a credit protocol hosted by Ethereum, it has become relevant in the DeFi space as a DAI stablecoin provider.
Unlike other credit apps, Maker users can only borrow DAI by depositing collateral in accepted cryptocurrencies or creating a new vault with accepted tokens.
Maker reports that TVL is worth $ 15 billion. Even though the average transaction size dropped from $ 3 million in August to $ 1.5 million in October, this is still the platform whales love to use.
Aave has closely followed Maker as the leading credit protocol. It is currently used not only on Ethereum, but also on Polygon and Avalanche. The popularity of the project is very high as it offers 31 different assets and 16 liquidity pairs from Uniswap and Balancer.
Flash loans and exchange rates have made it a preferred destination for large investors and arbitrageurs. Aave recently hit a $ 15 billion TVL in Ethereum, and transaction size has lagged Maker, despite the fact that the average number of transactions tripled in the third quarter.
“Aave is definitely the preferred destination for whale trading, but it’s important to note that the transaction size on Maker is around 10 times larger than Aave.”
Meanwhile, Alpaca Finance, BSC’s largest lending protocol, saw transaction numbers quintuple in the third quarter, reaching nearly $ 125,000 in October.
As a result, enthusiasm for new products can come and go. DeFi space is growing, and whales are mostly interested in the Ethereum network.
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According to AMBCrypto