DeFi acceptance on the Binance Smart Chain is at an all-time peak.

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Following a number of protocol updates and cross-chain integrations, decentralised finance protocols on the Binance Smart Chain saw their token values and overall value locked reach new peaks.

After being one of the hottest sectors at the start of 2021, decentralised finance (DeFi) has taken a well-deserved break from the spotlight in recent months, but recent development on multiple top platforms may hint at another DeFi run in the near future.

Although projects on the Ethereum (ETH) network continue to experience unpredictable swings in gas fees and transaction times, some projects on the Binance Smart Chain (BSC) have seen an increase in protocol activity and token value over the last week.

XVS/USDT vs. CAKE/USDT vs. LINA/USDT 4-hour chart. Source: TradingView

Venus (XVS), PancakeSwap (CAKE), and Linear Finance are three ventures on the BSC that have seen improvements in trading volume, price, and operation under their DeFi protocols (LINA).

XVS/USDT

The Venus protocol is a synthetic stablecoin and algorithmic money market protocol that offers a lending and investing solution for DeFi on the BSC.

Recent bullishness for the project began to increase around April 20 when it was revealed that a proposal was submitted to add Dogecoin (DOGE) to the Venus money market.

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Following an initial market spike and pullback, momentum and price demand for the project increased on April 29 with the launch of the Venus Reward Token (VRT) and Venus nonfungible token (NFT) airdrops.

The announcement of the airdrops, along with the listing of XVS on the Crypto.com exchange, fueled a 70% increase in the price of Venus from a low of $72 on April 29 to a new all-time peak of $124 on April 30.

XVS/USDT 4-hour chart. Source: TradingView

At the time of writing, the total value locked (TVL) in Venus is nearing $10 billion.

CAKE/USDT

PancakeSwap, like Uniswap (UNI), is a BSC-based automated market maker (AMM) that allows users to trade tokens and receive a portion of fees by yield farming.

Data from TradingView shows that the price of CAKE rallied 102% over the past week, going from a low of $21.90 on April 23 to a new record high at $44.28 on April 30 as token holders engage with the low fee, high yield protocol.

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CAKE/USDT 4-hour chart. Source: TradingView

Price action for CAKE has seen a steady rise over the past week following the launch of V2 farms on April 23 and the successful completion of token migration on April 24.

The TVL on PancakeSwap has increased to $9.873 billion since the conversion and opening of the modern liquidity pools, making the protocol the second-ranked DeFi protocol by TVL.

Total value locked on PancakeSwap. Source: Defistation
VORTECS™ Score (green) vs. CAKE price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECSTM Score for CAKE started to rise on April 24 and hit a peak of 7 about 14 hours later, before the price rose 62 percent over the next five days.

LINA/USDT

Linear Finance (LINA) is a decentralised delta-one asset protocol that allows for the development of synthetic asset tokens that reflect conventional assets such as stocks, forex, market indices, and other thematic sectors and can then be exchanged on the Linear exchange.

Data from TradingView shows that the price of LINA has climbed 70% over the past week, rising from a low of $0.069 on April 23 to an intraday high of $0.1164 on April 30 with $196 million in 24-hour trading volume.

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LINA/USDT 4-hour chart. Source: TradingView

The recent momentum for the project began to build ahead of the April 27 ask-me-anything session with the Moonbeam Network, which calls itself the “easiest on-ramp to Polkadot” thanks to Ethereum-compatible smart contracts on a Polkadot parachain.

Cross-chain interoperability has been a big trend of the 2021 bull market, but the possibility of being able to run LINA on the Polkadot, BSC, and Ethereum networks could have sparked renewed interest in the protocol.

DeFi protocols on BSC are well-positioned to see substantial returns as the pool of retail and institutional investors investing in the cryptocurrency ecosystem continues to expand, thanks to low fees and high yield opportunities.

 

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