Amid DeFi Popularity Explosion Total Number of Addresses Surge to One Million

December 7, 2020 2:13 PM UTC

 

Decentralized finance, also known as DeFi, is a rapidly-growing sector of the crypto market. DeFi is an open-source protocol that provides new borrowing and lending solutions to its users by employing blockchain, smart contracts, and crypto-assets. According to the most recent data gathered by Dune Analytics, the number of unique DeFi addresses soared exponentially to hit the barrier of one million addresses.

To measure the number of unique addresses, a partner of crypto venture fund 1confirmation Richard Chen created the dashboard on Dune Analytics. He stated that existing metrics exaggerate actual figures as users can own multiple addresses. According to the report, the number started to grow from less than 100,000.

Chen mentioned on Twitter that the craze around the DeFi sphere is mainly lifted by the introduction of yield farming and reward incentives. Yield farmers poured billions of dollars in order to earn new tokens as a reward for using DeFi protocols. 

Massive Increase Of DeFi TVL 

As reported earlier, the number of Bitcoin locked in DeFi smart is declining as investors withdraw their assets from Ethereum based DeFi protocols. In less than two weeks, the amount of Bitcoin has slumped to 147,350 from 153,591, a drop of 6,421 BTC, worth almost $120 million.

Based on the analysis, the amount of Bitcoin is starting to fall as DeFi rewards and incentives are drying up. Despite the fall of locked BTC, DeFi TVL (total value locked) has passed a $15 billion threshold, according to DeFi Pulse. 

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