Binance has been having a hard time lately.

It lost some of its partnerships with payment processors, and was banned by some UK banks.

But it seems that this was not enough as the negative impact began to reach the Binance Blockchain, as the activity of decentralized finance projects on the Binance Blockchain decreased according to a recent report from “Messari”.

Decentralized finance projects are a set of pilot products that provide loans, interest and asset swaps without banks or other intermediaries and third parties.

The world of DeFi exploded in popularity last year, and some of the people who jumped on the bandwagon early are making a lot of money.

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According to report It was released today by the cryptocurrency data analysis platform “Messari” that crypto activity, especially that of DeFi projects, slowed down in the second quarter of 2021.

The biggest affected by this slowdown is the Binance blockchain.

In the DeFi Review report for the second quarter of 2021, Messiri researchers wrote:

DeFi protocols saw a decline in activity in the second quarter of 2021 as speculation in the markets faded.

Trading volume on decentralized exchanges (DEXs) in particular rose from April to June, jumping from $221 billion to $405 billion.

While this initially appears positive, it declined towards the end of the quarter.

According to the “Messari” report, the disproportionate loser of the market crash in May is the Binance Blockchain (BSC), a blockchain launched by Binance which is the world’s largest cryptocurrency exchange by trading volume.

The Binance Blockchain supports most types of DeFi applications, and there are some of them that have emerged remarkably on the Binance Blockchain such as “PancakeSwap”, a decentralized trading platform that competes with “Uniswap” based on Ethereum.

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The “Messari” report also stated the following:

Hacks and exploits on the Binance BSC Blockchain contributed to the losses that exceeded hundreds of millions of dollars.

The BSC blockchain saw a significant decline in activity in June with PancakeSwap volumes dropping 69% in June.

The loss of the Binance Blockchain “BSC” was the gain of the “Polygon” blockchain, which is an Ethereum-based project and is an scaling solution that seeks to address some of the major limitations in Ethereum by speeding up transactions and making transactions cheaper.

The report noted and commented on this as follows:

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The rise of “Polygon” also played an important role in eliminating the share of the Binance Blockchain (BSC) from decentralized exchange volumes.

With all eyes turned to Polygon, with his new collection, BSC was taken out of the picture.

The report added that “UniSwap v3” has re-established itself as the king of the DEX market.

According to “Messari”:

Uniswap v3 now accounts for more than 40% of total DEX volume and continues to eat up the DEX market, showing no signs of slowing down.

Binance’s decentralized finance ecosystem has fared well, but Ethereum appears to be reasserting its traditional dominance.

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