DeFi Sunday: The industry is experiencing an extreme boom

The second quarter was particularly strong for Ethereum DeFi protocols

During the second quarter of this year, we witnessed the strongest period so far for this innovative industry. According to a new analytical report called ConsenSys Q2 2021 DeFi Report, the number of addresses on the Ethereum network increased by 10% from April to June. However, the number of addresses using decentralized finance protocols has grown much faster, an increase of up to 65%. Active DeFi addresses still represent less than 2% of all Ethereum addresses.

DeFi applications and protocols are available on several blockchains - such as Binance Smart Chain and Solana. However, the largest share of their use still belongs to the Ethereum network, where they originated. These are blockchain protocols that remove banks and other intermediaries from various financial transactions and services. For example, users can directly (without an intermediary) exchange cryptocurrencies or make money by borrowing them.

In DeFi, the ever-increasing financial value is locked

Decentralized finances are moving forward at tremendous speed. Users can now enjoy relatively easy access to information (education), very interesting returns and also proven practices. This has also led to a sharp increase in awareness of DeFi and the number of e-wallets that have interacted with the industry. These include trading on decentralized cryptocurrency exchanges (such as Uniswap), crypto loans (Compound), or liquidity funds (KeeperDAO).

Altogether, nearly 3 million Ethereum addresses interacted with similar DeFi services. It is estimated that there may have been many more. The growth of DeFi is also reflected in the use of stablecoins, which are an ideal solution for users in situations where they want to avoid market volatility and, at the same time, be ready to buy at any time, without the need to use FIAT currencies. According to DeFi Pulse, DeFi protocols have tied assets worth nearly $ 70 billion. These protocols also hold up to a quarter of all USDC stablecoins.