Data from Dune Analytics reveals that the number of Decentralized Finance (DeFi) users on Ethereum has reached a new high of over four million. The number of users has been growing strongly since the start of the year, which is similar for other measures.
The total number of users in the DeFi space on Ethereum hit a new all-time high, surpassing four million in the last week of November 2021. The data comes from Dune Analytics, which also shows that Uniswap is far behind the most popular DeFi. platform on Ethereum.
Uniswap has over three million users as of November 2021 and is the most popular DEX on the market. Other platforms and projects that significantly contribute to the use of DeFi are SushiSwap, Compound, Aave, Balancer, and MakerDAO, among others. Most of them have user bases exceeding 300,000.
Market analysts and enthusiasts will not be surprised at this milestone, which is simply the result of the constant growth of the DeFi space. More and more platforms and technological developments have driven the adoption of DeFi, which also marks the general public.
The data itself provides good evidence of the extraordinary growth of DeFi, which began to accelerate in the fourth quarter of 2020. The number of users has increased by approximately 8 times over a period of one year.
DeFi has also caught the attention of regulators, who have referred to it in their attempt to implement investor protection measures. DeFi loans appear to be of particular concern to lawmakers. So far, no laws have been put in place to restrict the market, but that could still change as regulators focus their efforts on the market.
DeFi is also taking off on other networks
Ethereum is sort of a home for DeFi, but it may not last long. Several next-generation blockchain networks with higher throughput and lower gas costs are starting to take shape.
Solana and Cardano are seeing an increase in the number of decentralized products focused on finance, which could help boost adoption of their ecosystems. The performance improvement is certainly something that favors these networks, although Ethereum has ETH 2.0 upgrades in the pipeline as well.
So far, no killer product has attracted investors like Ethereum and Binance Smart Chain. But it’s still early days for these networks, and the Cardano ecosystem mostly seems to be making headlines for its efforts.
The success of networks will only increase the value of DeFi to the top. Since 2021, DeFi’s TVL has grown by more than 800%, reaching $ 200 billion in October 2021. Next year, growth is unlikely to slow down as technological improvements are made.
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