The decentralized finance (DeFi) sector has fabricated meteoric growth so far. The crypto experts believe that the craze around DeFi protocols mainly lifted by the introduction of reward incentives and yield farming. However, in recent weeks, the DeFi sphere took an extensive downturn, with the combined market cap of DeFi assets dropping 25% while volumes flinched almost 30%.
Santiment, a crypto market data firm, published a blog post on October 8, DeFi token daily trade volumes have plummeted by over 30% in total, Sushi dropped by almost 51%, Uniswap by 38%, and Yearn Finance by 31%.
“The crypto market has been engulfed in a sea of red this week, with most DeFi blue chips recording double-digit losses over the past 7 days.”
DeFi User Base Jumps at an Exponential Pace
Kyber Network, Compound, 1inch, Aave, and OpenSea are some leading decentralized finance (DeFi) protocols that have experienced a constant surge in their user base, as revealed by the report.
On the other side, Uniswap still drives the DeFi ecosystem with its exponential user growth. According to the report, more than 350,000 unique users have joined the platform. Market analysis and industry inside data show that approximately 80% of all DeFi users have now employed the giant DeFi platform at some point, supporting Uniswap to become the most famous decentralized finance platform. In the last month, the total value locked in Uniswap had hit a major milestone of $2.2 billion, as per data from DeFi Pulse.