TL;DR
- Changes in Blockchain TVL: The year 2023 saw changes in the total value locked (TVL) rankings between various blockchain platforms, with significant fluctuations and new entries having an impact.
- Blockchain Performance Highlights: Certain networks gained popularity and development recognition, outperforming their rivals in aspects such as Google searches, nft sales, and on-chain trading volume.
- Cryptocurrency value fluctuations: There have been notable increases in the prices of some cryptocurrencies, influenced by factors such as TVL dynamics and market trends, although the direct correlation between TVL and price is not always clear.
Changing position throughout 2023
According to Coin98 Analytics, the blockchain platform with the highest total value locked (TVL) as of the end of 2023 is Tron (over $8 billion). BNB Chain ($3.5 billion) and Arbitrum ($2.4 billion) rounded out the top three, while Solana follows with $1.4 billion. The analysis excludes ethereum, whose figure reached almost 30 billion dollars.
However, the current classification has not always been like this. The three leading platforms maintained their positions throughout the year, although BNB Chain took first place at the beginning, while Tron came in second.
Solana was in line in January 2023 with a TVL of $210 million. As the year went by, new blockchain networks emerged that changed the landscape. An example is Coinbase's layer 2 solution, Base, which was released in August. Its TVL gradually increased throughout 2023, reaching almost $440 million by the end.
For its part, Blast, an upcoming L2 blockchain, made waves in the industry in the last quarter, positioning itself among the leaders and finishing the year in fifth place with a TVL of more than $1 billion. The growing popularity of the network led to a phishing attack in November, after which one victim parted with more than $130,000. Blast mainnet launch is planned for February this year.
Optimism, Avalanche, Polygon, and Cardano are the remaining blockchains in the top 10. Cardano started the year with less than $50 million and crossed the finish line with over $400 million.
At the end of 2023, in addition ethereum?src=hash&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>#ethereumHere are the top 10 blockchains with the highest TVL:
tron
BNB Chain
Decision
solarium
Burst
Optimism
avalanche
Polygon
Base
Cardano pic.twitter.com/jvgGvJCwKN– Coin98 Analysis (@Coin98Analytics) December 31, 2023
Some cryptocurrencies, including Solana's SOL and Cardano's ADA, saw notable price increases last year. The former went from less than $10 to almost $125 on Christmas, while the latter saw a 150% increase to over $0.60.
While increased TVL could be a factor for those spikes, the relationship is not always directly proportional. Total value locked refers to the total amount of cryptoassets deposited in a particular DeFi protocol and could be considered a sign of trust and stability in the corresponding network.
On the other hand, the rise in TVL could be the result of a bull market. In this case, new funds do not enter the ecosystem, but the value of the locked assets skyrockets as prices do too.
Solana and Cardano in the spotlight
Those two networks have been particularly intriguing to industry participants lately because of their achievements toward the end of the year. Solana surpassed ethereum in Google searches in mid-December, becoming more popular in countries such as Spain and the Philippines.
It also surpassed its rival in the field of non-fungible tokens. Its nft sales volume skyrocketed to $75 million weekly last month, versus $72 for ethereum. Furthermore, Solana's on-chain trading volume peaked at over $2.6 billion on December 22, while ethereum recorded $1.6 billion on that day.
For its part, Cardano stood out as the top network by development activity in the last 30 days. This happened at the end of December, and next up were Polkadot, Kusama, and Avalanche.
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