Ethereum Linked DeFi Addresses Surged 65% in Q2 2021- ConSenSy Report

By Godfrey Benjamin
Published August 3, 2021 Updated August 3, 2021
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Ethereum Linked DeFi Addresses Surged 65% in Q2 2021- ConSenSy Report

By Godfrey Benjamin
Published August 3, 2021 Updated August 3, 2021

A new report by blockchain software technology company, ConsenSys has highlighted the growth in the decentralized finance (DeFi) ecosystem as built around the Ethereum blockchain. The report, which comes as a quarterly publication from the firm showed that about 2.91 million unique addresses used at least one DeFi protocol at the end of the second quarter, a figure that represents a 65% growth from the first quarter.

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Beyond the primary exposure to the digital currency ecosystem that users gain by buying or investing in Bitcoin (BTC), Ethereum (ETH), and other altcoins, the embrace of DeFi remains amongst the top ways investors are beginning to gain more value from the crypto ecosystem. DeFi represents a shift in how financial products are administered differently from what traditional finance has ever offered.

Atop the Ethereum blockchain, DeFi protocols including Aave, Uniswap, and Compound amongst others have proliferated, with their innovative offerings ranging from lending to decentralized exchanges amongst others. These protocols according to the ConsenSys report have not just surged in their total embrace, they have also grown in terms of valuation.

DeFi Uptick Through the Lens of Metamask

The growth in the DeFi ecosystem can be further highlighted by the activity of Metamask amongst other top wallet service providers. While Metamask sees a significant Ethereum cum DeFi activity on a daily basis, ConsenSys warns that wallet addresses on this wallet may not necessarily reflect the true number of actual addresses as users tend to duplicate addresses.

Once this factor has been noted, the report showcases that Metamask is an important gauge for the DeFi ecosystem.

“By June 1, 2021, MetaMask monthly active users surpassed 7.3 million. This is in part due to the growth of DeFi applications on other Ethereum Virtual Machine (EVM) compatible networks that users can access via MetaMask, like BSC and Polygon,” the report reads.

The broader growth of DeFi as showcased by the growing addresses, however, represents a fraction of all active addresses on the Ethereum blockchain. Per the report, the 2.91 million active DeFi addresses compare to the 161 million addresses resident on the Ethereum network.

Ethereum Usability Post London Hardfork Upgrade

While the growth of the DeFi ecosystem has been impressive as showcased by the ConsenSys report, there is a high expectation rate per the proposed London hardfork upgrade (EIP 1559) scheduled for August 5.

The upgrade is expected to usher in an entirely new fee structure, while also stirring a deflationary model for the Ether coin. With gas fees expected to reduce, the usability of the network will be enhanced, and the growth of DeFi may further peak in the coming quarters.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Godfrey Benjamin
135 Articles
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin

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