DeFi Bloodbath Binance Smart Chain hits harder than Ethereum
The DeFi bloodbath hitting the Binance Smart Chain is stronger than Ethereum, according to data from Messari, but Polygon is on the rise on the other hand, so let’s take a closer look at today’s altcoin news and analysis.
The DeFi market is slowing as the entire market collapses and the DeFi bloodbath has hit Binance Smart Chain harder than Ethereum. However, Polygon did well in the second quarter. Bankance has had a rough few weeks, losing many of its partnerships with payment processors, and has to cease operations in some countries due to bank freezes. As if that weren’t enough, it’s the Binance Smart Chain, the race to overtake Etheruem as the main defi blockchain with a group of experimental products that offer lending rates and asset swaps without the need for bank customers and other intermediaries .
The DeFi world exploded a year ago and some of the people who jumped on the bandwagon were making a ton of money. However, as Messari reports, things slowed down a bit in the second quarter of 2021, and the Binance smart chain took the biggest blow. In his DeFi report for the second quarter of 2021, Messari wrote that “DeFi logs saw a decline in activity in the second half of the quarter due to waning market speculation”.
Messari noted that the volume of the DEX increased from April to June, increasing from $ 221 billion to $ 405 billion. While this looked positive, volume declined towards the end of the quarter. Monthly DEX volume was $ 203.5 billion in May and halved to $ 95 billion in June, according to Messari DATA. The loser of the market crash is of course Binance Smart Chain. This extends to Defi applications in its orbit, including PancakeSwap, a BSC-based DEX that competes with Etheruems Uniswap, as Messari wrote:
“Combined with a series of hacks and mining on BSC that resulted in hundreds of millions of dollars in losses, speculation at BSC dried up in June, resulting in a 69% drop in PancakeSwap volume in June.”
BSC may be a victim of short-term thinking, as Messari has suggested, but it notes that most investors using BSC products use so-called mercenary capital for small crypto tokens. In short, bSC was used to make quick money. However, the loss of BSC was Polygon’s gain as the project gained momentum:
“The rise of Polygon also played an important role in reducing Binance Smart Chain (BSC) market share in terms of decentralized exchange volume. ds Polygon, with its new set of tokens for speculation and farms for harvest, BSC was left out of the picture. “
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