Victor Ugochukwu · Dec 14, 2020 . 5min read
Ethereum controlled 96% of all DeFi transactions in Q3
DeFi transaction volume surpassed $123 billion within the penultimate quarter of 2020 and Ethereum network marshalled $118 billion out of this.
By Victor Ugochukwu · Oct 8, 2020 . 6min read
The penultimate quarter of 2020 Q3, was by the far the period where the Ethereum ecosystem saw its highest DeFi transactions volume ever. The numbers are out, and it shows that Ethereum controlled 96% of all the DeFi transactions volume within this period.
Without a doubt, the kind of fast-paced movement we saw in decentralized finance within the last three to six months has slowed down. According to a recent report by DappRadar, DeFi ecosystem transaction volume surpassed $123 billion within the penultimate quarter of 2020 and Ethereum network marshalled $118 billion out of this jaw-dropping figures.
TVL which has become the single most popular metric for the DeFi industry, it grew by over 380% within Q3. TVL across protocols reached a whopping $10 billion. By September 29th, it would record $11.23 billion before it started correcting. Uniswap, Curve and Maker were the leading protocols in terms of TVL. Yield farming by most Ethereum protocols provided an avenue for degens to generate most times incredible yields became more popular in DeFi within Q3.
More importantly, the Ethereum network was stretched to its limits with transaction fees reaching a new all-time high still within Q3. However, as the DeFi boom continued, so was active wallets popping up in the network. As per the report, of this DeFi ecosystem transactions volume, DEX and Lending protocols contributed highest. As the DappRadar report proves, four protocols – Uniswap, SushiSwap, Balancer and Compound were the leading protocols. More than 56% of Ethereum’s daily active wallets in Q3 came from these four protocols.
Ethereum Dapps earned huge fees in Q3.
Additionally, DeFi protocols earned record fees in this period. For instance, Uniswap earned over $33 million in September. The DEX beast finally released its UNI token and airdropped to over 140,000 addresses that rushed to claim their bounty. And as they claimed, they had to burn gas fees which meant an increase in revenue for the biggest DEX protocol. In total, DeFi protocols raked in as much as $59 million earnings in September.
In all, 96% of all DeFi ecosystem makes Ethereum the undisputed network for decentralized finance. Even though the likes of EOS, Tron, IOST, Ontology and NEO all tried to woo developers and users, Ethereum has already achieved critical mass usage. Not to forget to mention the recently launched Binance Smart Chain by the largest cryptocurrency exchange by daily volume trade. It seems to be aggressively marketing itself as a credible platform and hand since attracted a few food tokens.
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