Crypto exchange platform Binance’s research on Defi observed that Ethereum was more focused towards Defi than other blockchains.
Binance’s research on Defi growth
The report analyzed data regarding decentralized finance (Defi) as well as decentralized applications (DApps). The report analyzed data provided by DAppReview coupled with the recent events happening in the Defi ecosystem. The report was mostly focused on the Ethereum network as this blockchain had a greater focus on decentralized exchanges (DEX) and financial apps such as smart contracts.
The report noted that the Defi ecosystem was growing rapidly as the space saw the entry of over 40,000 new users every month. Although only a fraction of these users used financial apps while others flocked to DEX platforms, the ecosystem still expanded. The number of users of these financial applications increased from below 5,000 in January to nearly 26,000 users by December. Ethereum’s DeFi space remained small as over 90 percent of all new users flocked to DEX platforms.
The report noted that the number of active DApps, i.e., projects with over 50 daily users, had doubled in 2019. The report observed that new developers have been releasing products and services across the year.
The report also compared Defi across various blockchains and noted how the interest rates varied across these networks. Among various networks, Ethereum and Augur had the lowest borrowing rates (2.2 and 2.12 percent, respectively). However, these networks also had the least lending rates (0.01 percent). On the other hand, stablecoins DAI and USDC had the highest rates for borrowing and lending.
The report stated that while Defi represents a minute part of the crypto industry, it is one of the most “vibrant” aspects of the industry.
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