DeFi adoption on Binance Smart Chain reaches new highs

Decentralized finance (DeFi) has taken a well-deserved break from the spotlight in recent months after being one of the most popular sectors in early 2021, but recent growth across several major platforms may suggest another DeFi career in the near future.

While projects operating on the Ethereum network continue to deal with wild fluctuations in gas fees and transaction times, several operating on Binance Smart Chain (BSC) have seen an increase in protocol activity and token value over the past week.

Three projects at BSC that have seen increases in trading volume, price and activity within their DeFi protocols are Venus (XVS), PancakeSwap (CAKE) and Linear Finance (LINA).

The Venus protocol is a synthetic money market and stablecoin algorithmic protocol that provides a loaner and loaner solution for DeFi on BSC.

The project’s recent uptrend began to rise around April 20 when it was revealed that a proposal was put forward to add Dogecoin (DOGE) to the Venus money market.

After an initial price increase and retracement, momentum and price activity for the project saw another increase on April 29 following the announcement of Venus Reward Token (VRT) and Venus nonfungible token (NFT) air launches.

The announcement of air launches combined with the inclusion of XVS in the exchange helped trigger a 70% spike in Venus price from a low of 7,72 on April 29 to a new all-time high at $ 124 on April 30.

PancakeSwap is a BSc-based automated market maker (AMM) similar to Uniswap (UNI) that allows users to exchange tokens and earn a share of fees through yield farming.

Price action for CAKE has seen a steady increase over the last week following the launch of V2 farms on April 23 and the successful completion of token migration on April 24.

Since the migration and launch of the new liquidity pools, the TVL in PancakeSwap has skyrocketed to $ 9.873 billion making the protocol the second DeFi protocol classified by TVL.

The Vortecs ™ score , unique to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements, and Twitter activity.

As seen in the chart above, the Vortecs ™ score for CAKE began to rise on April 24 and peaked at 7 around 14 hours before the price increased by 62% over the next five days.

Linear Finance (LINA) is a decentralized Delta-One Asset Protocol that allows the creation of synthetic asset tokens to represent traditional assets such as commodities, forex, market indices and other thematic sectors that can then be traded on the linear exchange.

TradingView data shows that LINA’s price has risen 70% over the past week, going from a low of 0 0.069 on April 23 to an intraday high of 0 0.1164 on April 30 with volume 196 million in 24-hour trading volume.

The recent momentum for the project began to be built ahead of the April 27 Q & A with the Moonbeam Network, which calls itself the” easiest access ramp to Polkadot ” thanks to Ethereum-compatible smart contracts on a polkadot parachain.

Inter-chain interoperability has been one of the main topics of the bull market of 2021, so the prospect of being able to operate LINA on the Polkadot network, as well as on the BSc and Ethereum networks may have helped spark a new round of interest in the protocol.

As the pool of retail and institutional investors participating in the cryptocurrency ecosystem continues to grow, DeFi protocols at BSC are well positioned to see significant gains thanks to low fees and high-yield opportunities.

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