Binance research report indicates: the vast majority of financial applications are built on Ethereum.

Currently, most DeFi protocols are built on the Ethereum blockchain. As of June 5th, the total value locked in Ethereum-based DeFi applications reached $500 million (equivalent to over 1.5 million Ether).

According to the report by Binance Research, Decentralized Finance (DeFi) has become one of the main applications on the Ethereum network. The primary applications within this ecosystem include lending platforms that support blockchain assets, such as MakerDao (MKR) and its stablecoin DAI. For more information about DAI, please refer to the stablecoin report previously released by ABM here.

DeFi, short for "Decentralized Finance," can be defined as a set of applications built on decentralized networks that use blockchain technology and peer-to-peer protocols to facilitate financial transactions and lending.

DeFi has evolved to become a core driver of activity on the Ethereum network. At its core, DeFi principles aim to provide a new, permissionless financial service ecosystem that operates without central authority, allowing anyone in the world to participate. Within this ecosystem, users act as their own custodians, maintaining full control over their assets.

The Lightning Network solution for Bitcoin can be considered a DeFi application running on the Bitcoin blockchain. As of June 5th, the Lightning Network had a locked value of approximately $8 million.

Regarding EOS, EOSRex allows users to lease EOS resources such as CPU and bandwidth/NET. Despite being launched just a month ago, this application has already become the platform with the highest total collateral value, with over 90 million EOS locked up.

The report notes that Ethereum, being the largest blockchain platform by market capitalization, has been the birthplace of most DApps. However, with the emergence of continuously evolving platforms like EOS, this landscape may change. As demonstrated by these lending platforms, these applications have the potential to reach billions of users globally, allowing for efficient access to basic financial services, making DeFi one of the best use cases for blockchain technology.

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