The DeFi (Decentralized Finance) space has received mass adoption in the past one year from crypto investors following its high reward from technological development.
Ethereum DeFi Users Spike to a Record High of More Than 4 Million
According to Data from Dune Analytics on November 28, it shows that the number of decentralized finance (DeFi) users on Ethereum has hit a record high of more than 4 million. The number of users has been growing rapidly since the beginning of this year, and the situation is similar for other indicators.
The total number of users in the Ethereum DeFi area reached a record high of over 4 million in the last week of November 2021. The data comes from Dune Analytics, which also shows that Uniswap is by far the most popular DeFi Ethereum platform.
As of November 2021, Uniswap has more than 3 million users and is the most popular DEX on the market. Other platforms and projects that have made significant contributions to the use of DeFi are SushiSwap, Compound, Aave, Balancer and MakerDAO. Most of them have a user base in excess of 300,000.
Market analysts and enthusiasts will not be surprised by this milestone, it is just the result of the continued growth of the DeFi space. More platforms and technological developments have encouraged the adoption of DeFi, which is also becoming mainstream.
The data itself is good evidence of DeFi’s exceptional growth, which began to accelerate in the fourth quarter of 2020. The number of users has increased about 8 times in one year.
DeFi has also drawn some attention from regulators who mentioned it when implementing investor protection measures. DeFi lending seems to be of particular concern to the legislator. No laws have yet been passed to restrict the market, but this situation may change as regulators become more focused on the market.
DeFi Finding Comfort in Other Networks
Ethereum is home to DeFi, but that can’t take long. Multiple next-generation blockchain networks with higher throughput and lower gas costs are taking shape.
Both Solana and Cardano have seen an increase in the number of products that focus on decentralized finance, which can help drive the adoption of their ecosystems. Improved performance will certainly benefit these networks, although Ethereum is also undergoing an ETH 2.0 upgrade.
So far, there is no killer product that attracts investors like Ethereum and Binance Smart Chain. But these networks are just beginning, and the Cardano ecosystem seems to be making headlines for their efforts.
The success of the network will only add to the value of DeFi. DeFi’s TVL has increased more than 800% since 2021, reaching $200 billion in October 2021. As technology improves, growth is unlikely to slow down over the next year.