BNB Chain closes 2022 as the second most preferred blockchain for DeFi projects
- BNB Chain has the second largest TVL after Ethereum.
- 12% of tokens on BNB Chain are scam tokens.
- A hard fork upgrade is expected in 2023, which will integrate bet finances on the Beacon Chain.
With a total value locked (TVL) of $4.05 billion, BNB Chain has been ranked as the second largest Tier 1 ecosystem after Ethereum, The Block Research found in a new report.
While the share of overall decentralized finance (DeFi) has seen a steady increase since May, BNB Chain’s TVL has fallen by 63% since January, per data from DefiLlama. Of the $38.93 billion unlocked as TVL in the entire DeFi ecosystem, BNB Chain’s TVL represented 10.4% of the total market share.
Source: DefiLlama
BNB Chain is highly regarded for its high throughput, low fees and fast transaction processing, making it a cost-effective alternative to Ethereum.
With 484 DeFi projects, BNB Chain’s TVL is far behind Ethereum’s TVL of $23.01 billion, which represents 59% of the overall total DeFi TVL market share.
Read Binance Coins [BNB] Price prediction 2023-24
House to cheat tokens?
Due to the nature of BNB Chain, it has the highest number of GameFi projects than any other blockchain. In a recently released report by Binance Research, 37% of projects in the gaming vertical of the web3 ecosystem are built on the BNB Chain.
Source: Binance Research
However, many have turned out to be scams due to the play-to-earn and get-rich-quick models adopted by many of these games. In the recently published Rytrekk report by Solidus Labs, 12% of all BNB Chain tokens are fraud, which is the highest of all blockchains.
Source: Solidus Labs
Comparing this to Ethereum, Solidus Labs reported that “8% of all Ethereum tokens are programmed to perform carpet pulling.“
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Network upgrade in the coming year
The BNB chain, December 27, announced the proposed implementation of a hard fork upgrade to the BNB Beacon Chain testnet at block height 34,587,202 and 34,963,303. Considering the current block generation rate, the hard fork is expected to take place on January 2, 2023.
According to the blog post, the hardfork upgrade, referred to as BEP159, will introduce “a permissionless validator election mechanism” and bring “the stake economy onto the Beacon Chain.”
With this update, the staking economy will be integrated into the Beacon Chain, allowing the validator set to be determined based on the ranking of accumulated tied tokens on validator candidates.
Validators are responsible for producing new blocks and will receive rewards for their efforts, which they can then share with delegators. BNB holders participating in the strike will also have the right to vote on proposals and contribute to the decision-making process for the future of the network.
