Which Platform is Most DeFi Built On?
If you’ve been exploring the world of decentralized finance (DeFi), you’ve likely noticed that one name keeps popping up over and over again—Ethereum. But why is Ethereum the most popular platform for building DeFi applications? Let’s break it down in a simple, human way.
Why Ethereum Leads the DeFi Revolution
Ethereum isn’t just another cryptocurrency. It’s a programmable blockchain, which means developers can build smart contracts—self-executing pieces of code that live on the blockchain. These smart contracts form the foundation of DeFi apps, automating everything from loans and trading to yield farming and insurance.
Ethereum was the first blockchain to introduce smart contract functionality in a practical, developer-friendly way. This gave it a huge head start in the DeFi space.
The DeFi Ecosystem on Ethereum
Most of the top DeFi projects live on Ethereum, including:
Uniswap
for decentralized token swaps
MakerDAO
for stablecoin lending using DAI
Aave
for borrowing and lending crypto assets
Compound
for earning interest and lending
Curve Finance
for stablecoin trading with low fees
These platforms together hold billions of dollars in total value locked (TVL), and nearly all of them are Ethereum-based.
Ethereum’s Strengths
So, what makes Ethereum so attractive for DeFi developers?
Strong network effects
More users, more developers, and more projects mean more trust and utility.
Robust security
Ethereum has been battle-tested over time.
Vast developer tools and documentation
Making it easier to build, test, and deploy.
Interoperability
Many DeFi protocols work together on Ethereum through ERC-20 token standards.
Are Other Platforms Catching Up?
Yes—but slowly. While platforms like Binance Smart Chain (BSC), Solana, Polygon, and Avalanche offer faster and cheaper alternatives, Ethereum still holds the lion’s share of DeFi activity. Even many DeFi projects on these newer platforms started on Ethereum or maintain versions on it.
Conclusion
When it comes to DeFi, Ethereum is still the king. Its early lead, mature infrastructure, and massive ecosystem make it the go-to platform for decentralized financial innovation. While other blockchains are making strides, Ethereum’s influence in the DeFi world remains unmatched.
If you’re diving into DeFi or planning to build your own dApp, starting with Ethereum is often the smartest move.