Decentralized Finance serves as a shorthand for P2P financial operations relating to lending or trading platforms. Therefore, DeFi allows users to access traditional services without the ambiguous requirements for the bank services.
Making transactions on Ethereum and some other blockchains, there are needs to pay gas fees which is the variable cost of using the network. These gas fees keep the network running.
Though most Decentralized Finance applications are on the Ethereum blockchain but it’s expensive. And with the rate at which people use the Ethereum network, the cost of making a transaction increase.
Higher interest in DeFi projects constitute part of the increased Ethereum gas fee because most DeFi projects are on the Ethereum network. Due to this, new projects and protocols are coming up on other blockchains with lower gas fees, and investors are hopping into them.
According to Messari, the best performing Decentralized Finance tokens in 1st quarter of the year are not on the Ethereum network. These assets are not the old assets we know. They are newcomers gaining their ground and not even on the Ethereum blockchain.
Also, the report released on the performance of Quarter 1 Recap, the best two performing Decentralized finance tokens are Cake (the native token of PancakeSwap) and LUNA (the financial network that covers synthetic digital assets).
Ethereum fees led many traders to move over to Binance Smart Chain to trade DeFi tokens and, PancakeSwap was the most popular exchange
Many traders moved to Binance Smart Chain for DeFi tokens due to Ethereum fees, and PancakeSwap is the most popular decentralized exchange on BSC.
CAKE ended the Q1 with a three thousand percent increase since the beginning of the year, making it the DeFi best-performing asset. And Terra is where several popular protocols are developing, and according to Messari, it has led to an increase in interest for Terra or Luna stable coins.
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