# Web3 Alpha Influx Boosts Liquidity, TVL Holds Steady at $124.9 Billion
The decentralized finance (DeFi) market has shown a significant recovery amidst structural changes in the Binance (BNB) ecosystem. The on-chain liquidity inflow triggered by Binance Alpha has led to a surge in decentralized exchange (DEX) trading volume on the Binance Smart Chain (BSC), overtaking Ethereum (ETH) to reclaim the top spot in the market. Meanwhile, the Sui network experienced over a 20% drop in Total Value Locked (TVL) due to a major hacking incident, highlighting market polarization.
# BSC Leads with 115% Surge in DEX Trading Volume Driven by Binance Alpha
According to DeFiLlama, total weekly DEX trading volume reached $117.5 billion from May 17 to May 23, marking a 13.08% increase from the previous week. BSC recorded a 115% surge to $43.2 billion, surpassing Ethereum (ETH) to become the DEX chain leader in terms of trading volume—a three-month high.
At the heart of this surge is Binance Alpha. Binance Alpha is a platform designed to enable on-chain discovery, token generation events (TGE), and airdrop participation directly within a centralized exchange environment. This eliminates the need for complicated wallet connections and gas fees, allowing anyone to access early Web3 projects effortlessly.
As of May 19, daily transaction volume on Binance Wallet exceeded $5 billion. According to Dune Analytics, Binance Wallet holds a 95.3% market share among the 12 major on-chain wallets. The reward system, Alpha Points, and the drastically lowered entry barriers for Web3 participation are credited with this user base expansion.
Ethereum (ETH) ranked second with $16 billion, while Solana maintained a strong position despite an 18.93% weekly decrease in volume, recording $22.6 billion. Other networks like Sui ($5.9 billion) and Base ($8.3 billion) also showed active performance. HyperLiquid (+22.68%) and ThorChain (+43.57%) continued their upward trends.
# Overall TVL at $124.9 Billion as Sui Hacking Incident Cuts TVL by 21%
The overall DeFi TVL rose by 1.21% from the previous week, reaching $124.9 billion. Ethereum remains the leader with a TVL of $68.1 billion, followed by Solana ($11.1 billion), BSC ($6.8 billion), Bitcoin ($6.6 billion), and Tron ($6.6 billion). HyperLiquid (+21.93%), Avalanche (+8.90%), and Base (+8.46%) saw significant increases, while Bitcoin (+6.21%) and Ethereum (+5.68%) showed steady growth. Conversely, Sui faced a sharp decline due to a security breach.
# Derivatives Trading Strengthens Around HyperLiquid
The perpetual futures market also saw positive trends driven by expanded on-chain liquidity. Weekly trading volume reached $98.2 billion, reflecting a 7.69% increase from the previous week, and 24-hour volume stood at $16.4 billion. This indicates that market participants are expanding their risk appetite in anticipation of future price increases. Meanwhile, the stablecoin market’s capitalization reached $245.9 billion, up 1.1% from the previous week. USDT continues to dominate with a 62.26% market share, with Ethereum and Tron being the main distribution networks.
# Binance’s Resurgence and Sui’s Crisis
This week, the DeFi market saw a reshaping of liquidity flows centered around Binance Alpha. BSC reclaimed its position from Ethereum as the leader in DEX trading volume, gaining an edge in the liquidity contest. Conversely, the Sui hacking incident was a stark reminder of the persisting security risks in the DeFi space. The future recovery of Sui will likely hinge on the restoration of asset mobility and the trust of liquidity providers (LPs).
