The second quarter of 2021 saw a 65% increase in the number of addresses interacting with DeFi protocols.
More than 2.91 million ETH addresses
Between April and June, the ConsenSys Q2 2021 DeFi report shows a 10% increase in the number of Ethereum (ETH) addresses. However, it is especially on the side of decentralized finance (DeFi) that the progress is even more impressive. Indeed, the number of ETH addresses using a DeFi protocol increased by 65% during the second quarter of 2021.
Thanks to the DeFi, cryptocurrency exchanges are carried out without intermediaries. Buyers and sellers trade live.
DeFi protocols now represent nearly $ 70 billion in assets. A very large majority of exchanges take place via the Ethereum network, but there are also other networks and in particular the very young Solana (SOL).
By early July, DeFi protocols such as Uniswap, Compound and KepperDAO had interacted with nearly 2.91 million Ethereum addresses.
Growth in stablecoins
Taking a closer look at the first two quarters of 2021, it can be seen that the rise in DeFi comes mainly from stablecoins. Thus, in the first half of 2021, the supply of stablecoins pegged to the dollar increased by 60%. It now represents nearly $ 65 billion. So much so that some see it as a threat.
The stablecoin Tether (USDT) is of course on the front line since it accounts for almost half of the stablecoins on the Ethereum network. The USD Coin (USDC) also plays an important role as almost a quarter of its offering interacts within DeFi protocols.
The success of stablecoins can be explained by several reasons. First, their stability is intended to be more reassuring for investors who are not just looking to speculate. In addition, they can be exchanged directly for other cryptocurrencies.
However, if the first half of the year was very positive for DeFi and more generally for cryptocurrencies, the third quarter of 2021 was marked by a sharp decline. But this decline does not seem decisive to really start the forward march of cryptocurrencies and DeFi.
The Ethereum community is waiting for the London update that should be launched this Wednesday 4 August. The way transaction fees are structured on the network will be changed. Observers are waiting to see if this new update will have a positive impact on the price of ETH and on the growth of DeFi.
My interest in new technologies has teleported me into the blockchain universe. Dimension both complex and so vast that my brain first reacted in “Error 404 ” mode bordering the spatio-temporal flaw before I gradually understand the codes.
The road is still long before getting the salvation of the Crypto god, but in the meantime I take the opportunity to share my passion with you.
DISCLAIMER
The words and opinions expressed in this article are the sole responsibility of the author and should not be considered as investment advice. Conduct your own research before making any investment decisions.
