Ethereum continues to be the leading platform in decentralized finance (DeFi), as TVL across all its platforms increased by $4.81 billion in the past week. This increase represents a much larger increase than other blockchain platforms, such as Base and Hyperliquid, which saw a decent but relatively low increase of 302.02 million and 290.21 million respectively.
Over the past seven days, #Etherum’s TVL has increased by $4.81 billion, #Base’s TVL by $302.02 million, and #Hyperliquid’s TVL by $290.21 million.
Funds have flowed into #Ethereum, #Base and #Hyperliquid. pic.twitter.com/YDZOGU0Esc
— Lookonchain (@lookonchain) December 2, 2024
Ethereum strengthens its position
The growth of TVL to a value of $4.81 billion proves that Ethereum plays a crucial role in the DeFi ecosystem. Ethereum remains popular among investors and institutions due to its decentralized application, which offers many types of utilities. These 7-day gains also cement Ethereum as the most dominant smart contract platform and extend its lead over competitors.
Basic and hyperliquid See notable inflows
Base, which was backed by Coinbase, saw its TVL increase by $302.02 million, and Base was found to be one of the fast developing blockchains. On the other hand, Hyperliquid also saw increased adoption, bringing in an additional $290.21 million for its environment. Both platforms have established themselves as leaders using their technologies and increasing number of users, which helps in attracting funds.
TVL movements across other chains
A few other blockchains saw significant TVL increases, albeit on a smaller scale than Ethereum’s. PulseChain increased its holdings by $141.24 million, while Aptos and Binance Smart Chain received $59.98 million and $47.76 million, respectively. Arbitrum, Avalanche and Polygon received TVL between $27 million and $33 million.
However, not all chains experienced growth, as there were cases of decline, as can be seen at the bottom of the table. Sui had the largest TVL drop at $140.7 million, followed by Bitcoin, Solana, CORE, Tron and Optimism with TVL drops of $78.71 million, $68.83 million, $35.2 million, $32.2 million respectively and $202.7 million.
Implications for the DeFi ecosystem
These recent TVL shifts only draw attention to Ethereum’s longevity and provide a new competitive note for new entrants like Base and Hyperliquid. Further capital investments in higher-tier blockchains could lead to increased usage, adoption, and innovation within the networks of projects located on those blockchains.
Although Ethereum has the largest market share, others indicate that the market is still diversifying and people are using multiple chains that offer exceptional features and a scaling solution.
