The decentralized finance (DeFi) has surged abruptly so far. The craze around the DeFi sphere is mainly lifted by the introduction of reward incentives and yield farming. Although some analysts are comparing DeFi growth with the ICO bubble of 2017, the recent meteoric growth of DeFi has locked over $4 billion worth of Bitcoin and Ethereum.
Since June 2020, the amount of ETH locked in the DeFi sphere has surged more than 215% and reached a high of 8.6 million ETH from 2.7 million, and Bitcoin rallied to 158,800 from 5000 BTC, a growth of almost 3000%, as per DeFi Pulse analysis.
The report further unfolds that 7.5% of Ethereum’s total market cap, worth $3.24 billion, is locked in DeFi smart contracts. On the other hand, 0.85% of Bitcoin’s total market cap, worth $1.81 billion, is locked. Although massive numbers of BTC and ETH have been locked up in the DeFi sector, still both assets hold 44% of the total value locked in the DeFi sphere.
DeFi Protocols User Base Surge Amid the Downturn
Kyber Network, Compound, 1inch, Aave, and OpenSea are some giant decentralized finance (DeFi) protocols that have experienced constant growth in their user base. However, Uniswap drives the DeFi ecosystem as more than 350,000 unique users have joined the platform. Market analysis suggests that approximately 80% of all DeFi users have now employed the giant DeFi platform, Uniswap, at some point.