DeFi Crash Hit Binance Smart Chain More Than Ethereum: Messari

[RSRS]

Binance is having a tough go of things recently. It's lost partnerships with payment processors, has had to limit onramps to its platform, and is being blocked by banks.

If that weren't enough, its Binance Smart Chain is also losing the race to overtake Ethereum as the go-to blockchain for decentralized finance (DeFi), the group of experimental products that provide loans, interest, and asset swaps without banks or other intermediaries.

The DeFi world exploded in popularity last year, and some people who jumped on the bandwagon early made a lot of money. But according to a report released today by cryptocurrency data provider Messari, things have slowed down in Q2 2021. And Binance Smart Chain took the brunt of it.

In its Q2 2021 DeFi Review, Messari writes that “DeFi protocols saw activity decrease in the second half of the quarter as speculation in markets died down.” Messari notes that volume on decentralized exchanges (DEXs) in particular was up from April through June, jumping from $221 billion to $405 billion. (DEXs are DeFi applications that allow you to swap tokens—but unlike crypto exchanges like, say, the hugely popular Coinbase, they allow trading without a middleman.)

While that initially looks

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