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Tron Overtakes Avalanche To Become The Third-Biggest Network By DeFi TVL

There is never a dull day in the crypto and blockchain world. Some developments will take people by surprise, whereas others make perfect sense. Tron has overtaken Avalanche to become the third-largest decentralized finance network by Total Value Locked, which is intriguing. 

DeFi on Tron Is Exploding

It is remarkable to see a network on the scale of Tron suddenly explore with excitement for DeFi protocols. Although Tron’s blockchain has hosted several DeFi protocols for a while now, there wasn’t as much interest in using them over projects on Ethereum, BNB Chain, Solana, etc. That situation has changed for the better, pushing Tron’s DeFi TVL above $5.35 billion.

One must admit the Total Value Locked growth on Tron has been rather exciting. The network had roughly $250 million in TVL in February 2021 and spiked to over $4 billion in the following months. However, it did lose some momentum later on before surpassing $6.3 billion in TVL in November 2021. Due to ongoing bearish market pressure, TVL continued to decrease gradually, but there has been a strong reversal since last week. 

Although Tron is home to nine known DeFi protocols, there are three projects with $1 billion or more in Total Value Locked. SunSwap saw a monthly TVl increase by over 15%, despite very bearish market conditions. JustStables saw its TVL rise by 18.72% to $1.35 billion. However, JustLend remains the dominant force, representing over 50.8% of all Total Value Locked on the network. Moreover, its monthly increase of 44.32% puts it above $2.73 billion. 

These moves are pretty steep and remarkable for several reasons. Tron is a very efficient network for fees and processes plenty of transactions with relative ease. However, few people expected it to overtake Avalanche as the third-largest decentralized finance network by TVL. For some reason, all other networks lose TVL left, right, and center due to falling asset prices, yet Tron heads in the opposite direction. 

Avalanche Goes Downhill Fast

The gap between Tron ($5.36 billion) and Avalanche ($5.3 billion) is not that big. However, momentum for Avalanche is far more bearish than one would think. The network is still operating as always, yet the falling asset prices aren’t doing it any favor. Moreover, Avalanche lost nearly 10% of its DeFi Total Value Locked this week, whereas Tron gained 27.64%. 

The top protocols on Avalanche – Aave V3 and Wonderland – still note a strong TVL increase this week. Unfortunately, the same can’t be said for Trader Joe (-12.67%), Platypus Finance (-20.84%), Benqi (-17.98%) and Curve (-39.88%). 

Such steep outflows are rather unusual, although they aren’t uncommon either. People are pulling funds out of decentralized finance in search of stability, and that trend will not slow down anytime soon. 


None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.

JP Buntinx

JP Buntinx has been writing about cryptocurrency since 2012. His interest in crypto, blockchain, fintech, and finance allows him to cover a broad range of different topics.

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