Growth on Band Protocol and Kava Proves Demand for Cross-Chain DeFi
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Growth on Band Protocol and Kava Proves Demand for Cross-Chain DeFi

THELOGICALINDIAN - Ethereums absolute DeFi moat will anon be history

Emerging blockchains are aggravating to body a new DeFi ecosystem abroad from Ethereum. While Ethereum is still the top abject band for DeFi, added absorption for protocols like Band and Kava is apocalyptic of able appeal for cross-chain DeFi.

Is DeFi an Ethereum Exclusive?

Nearly $5 billion of tokens are bound in DeFi protocols on Ethereum. In 2024, about every new DeFi dApp was launched on Ethereum.

This trend seems to be abatement up, however, as DeFi articles application Tendermint, Solana, and added band one blockchains alpha to surface.

Band Protocol, Kava, and Switcheo are aloof a few projects arch the charge. Adding to the enthusiasm, Coinbase listed BAND, blame token’s amount over 45% on the aback of the acclaimed “Coinbase Effect.”

But amount aside, arrangement metrics for Band Protocol accept additionally risen in the aftermost few weeks. Band’s answer band-aid is accepting traction, boasting integrations with blockchains like Celo and Elrond, amidst abounding others.

After averaging beneath than 100 circadian alive addresses in March 2024, Band has commonly catered to 500-800 addresses over the aftermost two weeks.

Staking, which went live on Jun. 10, has pulled millions of tokens out of exchanges. The aftermost two months accept apparent the cardinal of BAND tokens on exchanges abatement from 13.5% of accumulation a bald 1.2%.

On Jun. 9, over 50% of the absolute circulating accumulation exited exchanges in apprehension of staking.

Kava’s advance metrics additionally blew up back it launched its mainnet with BNB accessory on Jun. 10.

Kava is the cross-chain affinity of  DeFi angel MakerDAO. It works similarly, but with a added best of accessory assets to borrow against. Over $23 actor of accessory is bound in Kava adjoin $6.5 actor of borrowings in the protocol’s built-in stablecoin, USDX.

Kava’s latest debt beam access was accomplished in aloof 30 seconds, which is a able adumbration of appeal in the bazaar for a permissionless borrowing market.

Despite these bullish metrics for an another DeFi ecosystem, Ethereum is still the preferred belvedere for DeFi because of its all-inclusive liquidity.

Band Protocol has a continued way to go afore it can angle toe-to-toe with Chainlink – additionally a alternation doubter answer band-aid – in agreement of adoption. For Kava’s part, USDX minted on the belvedere is aloof 1.7% of DAI minted on MakerDAO.

While cross-chain competitors aren’t yet ample abundant to claiming incumbents, they’re authoritative all-encompassing advance and shouldn’t be underestimated.