BNB Chain closes 2022 as the 2nd most preferred blockchain for DeFi projects

• BNB Chain has the second largest TVL after Ethereum.
• 12% of the tokens on BNB Chain are scam tokens.
• A hardfork upgrade is expected in 2023, which will integrate the staking economy onto Beacon Chain.

With a total value locked (TVL) of $4.05 billion, BNB Chain has been ranked as the second-largest layer 1 ecosystem after Ethereum, The Block Research found in a new report.

While its share of the overall decentralized finance (DeFi), has seen a steady increase since May, BNB Chain’s TVL has dropped by 63% since January, per data from DefiLlama. Of the $38.93 billion locked up as TVL across the 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 rapid transaction processing, making it a cost-effective alternative to Ethereum. 

Housing 484 DeFi projects, BNB Chain’s TVL is a far cry from Ethereum’s TVL of $23.01 billion, which represents 59% of the total overall DeFi TVL market share. 

Read Binance Coin’s [BNB] Price Prediction 2023-24

House to scam tokens? 

Due to BNB Chain’s nature, 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 BNB Chain.

Source: Binance Research

However, many have turned out to be rug pulls due to the play-to-earn and get-rich-quick models adopted by many of these games. In the recently published rug pull report by Solidus Labs, 12% of all BNB Chain tokens are scams, which is the highest of any blockchain.

Source: Solidus Labs

Comparing this to Ethereum, Solidus Labs reported that “8% of all Ethereum tokens are programmed to execute rug pulls.”

How many BNB’s can you get for $1?

Network upgrade in the coming year

BNB Chain, on 27 December, announced the proposed implementation of a hardfork upgrade to its BNB Beacon Chain testnet at block height 34,587,202 and 34,963,303. Considering the current rate of block generation, the hard fork is expected to take place on 2 January 2023.

According to the blog post, the hardfork upgrade, referred to as BEP159,  will introduce “a permissionless validator election mechanism” and bring “the staking economy onto Beacon Chain.”

With this update, the staking economy will be integrated onto the Beacon Chain, enabling the validator set to be determined based on the rank of accumulated bonded 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 who participate in staking will also have the right to vote on proposals and contribute to the decision-making process for the future of the network.