Comeback: BNB Chain DeFi TVL Rises to Highest Since FTX Crash in 2022

The BNB Chain ecosystem (formerly Binance Smart Chain) was one of the most vibrant in the cryptocurrency space, especially during the 2021 bull run. At its peak, over $21 billion worth of assets were locked across DeFi apps on the chain, with Pancakeswap topping the charts as one of the most used DEXes in the industry.

However, the FTX debacle in late 2022 and the subsequent scrutiny it brought on Binance (the exchange) led to a large capital exodus from the crypto market. The BNB Chain DeFi ecosystem was also among the hardest hit, with the value of locked assets dropping as low as $2.6 billion by October 2023.

Fast-forward to the present and the BNB Chain ecosystem appears to be making a comeback. Data from DeFiLlama shows that the TVL on the chain has now surpassed $6.7 billion, its highest level since the FTX crash. 

The latest rise means that BNB Chain has now opened a considerable gap between its closest rival, Solana, which has a TVL of around $4 billion. Nonetheless, the BNB Chain still has significant work to do if it would reclaim its previous position as the second-largest chain by TVL. That spot is currently occupied by Tron, which has a TVL of $8.62 billion, which is way lower than Ethereum’s largely dominant value of $54 billion.

Pancakeswap and Venus Protocol Lead the Resurgence

Two protocols have led to the resurgence of DeFi activity on the BNB Chain. The ever-popular Pancakeswap appears to be attracting more capital, especially given the rise in the price of BNB in the past few months. The value of assets locked on Pancakeswap has risen by nearly 50% in the past month. Its $3.2 billion figure means it accounts for more than 40% of the entire BNB Chain TVL.

Lending protocol Venus has also seen remarkable growth after a debacle during the previous bull market saw it fall out of favor with the community. A strong comeback has seen Venus’ TVL rise to as high as $1.7 billion, also its highest since late 2022.

Meanwhile, the price of BNB has benefited from improved market confidence and resurging DeFi activity on the BNB Chain. The cryptocurrency is now trading above $600, a nearly 200% increase from its bear market lows of $205. As CoinTab data shows, BNB has gained 13% in the past seven days.