The number of (DeFi) users on Ethereum has crossed four million for the first time. Since the beginning of the year, the number of users has been steadily increasing.
In the last week of November 2021, the total number of users in the DeFi space on Ethereum surpassed four million for the first time. According to analytics, Uniswap is the most used DeFi platform on Ethereum.
As of November 2021, Uniswap had over three million users, making it the most popular DEX on the market. SushiSwap, Compound, Aave, Balancer, and MakerDAO, among others, are other platforms and initiatives that contribute considerably to the adoption of DeFi. The majority of them have a user base of above 300,000.
The achievement will come as no surprise to market experts and enthusiasts since it is just the outcome of the DeFi space’s constant expansion. More platforms and technology advancements have aided DeFi adoption, which is now becoming more common.
The data itself is compelling proof of DeFi’s phenomenal growth, which began to accelerate in 2020. Over the course of a year, the number of users has increased by nearly eight times.
Understanding the Concept “Decentralized Finance”
Decentralized finance, also known as DeFi, is a financial system that does not rely on traditional, centralized middlemen. Everything we’re used to goes via a bank or other financial institution, such as a global exchange. DeFi provides a system that performs on its own. The marketplaces are always open with DeFi, and no centralized authorities can block you from conducting transactions or denying you access to anything. Services that were formerly slow and prone to human error are now automated and safer thanks to the use of code. Anyone may look at and assess these codes.
The most well-known use of decentralized finance is online transactions utilizing DeFi cryptocurrency. Decentralized finance enables us to manage a wide range of financial activities more efficiently and transparently, including investing, insurance, trading, borrowing, and lending.
Defi Is Also Gaining Popularity on Other Networks
DeFi has found a home in Ethereum, but that may not stay long. Several next-generation blockchain networks are starting to take form, with better throughput and reduced gas prices.
The number of decentralized finance-focused products is growing in both Solana and Cardano, which might help promote the adoption of these ecosystems. The higher performance is undoubtedly a plus for these networks. However, Ethereum is also getting ETH 2.0 enhancements.