Decentralized finance (DeFi) projects based on the Ethereum blockchain have grown by 778% when compared to the first quarter of 2019, driving growth in the decentralized application space.
According to a report published by DappReview, compared to the first quarter of 2019 the total value of transactions made on decentralized applications grew by 8.2.2% to $7.9 billion, across a total of 13 different blockchains.
The top three blockchains – Ethereum, TRON, and EOS - contributed a total of 99.1% of the volume. The report notes that both TRON and EOS, however, lost users and transaction volume year-over-year, while Ethereum kept on growing.
This growth saw decentralized finance projects increase 778% compared to the first quarter of last year. Notably, these grew even though the total active addresses interacting with decentralized applications dropped by 22.1%.
The report notes that on the Ethereum blockchain, the total transaction volume on decentralized applications during the first quarter of the year was of $5.64 billion, an increased of 652% compared to last year. The report reads:
The main growth was driven by DeFi projects which have become the growth gist of Ethereum since 2019, with the largest transaction volume. It is worth noting that most of the volume of DeFi projects are in ERC-20 tokens (such as WETH, DAI, USDC, etc.), rather than the native token Ether.
ERC-20 tokens, it adds, made up 84% of the total transaction volume. Per DappReview the Ethereum dApp ecosystem “remains diverse and the performance was very steady compared to the other blockchains.”
The report further notes that casino decentralized applications, which were popular last year, saw their volume drop 64.6% year-over-year, while still remaining among the top three sectors when it comes to active addresses.
As CryptoGlobe reported, earlier this year the total value locked in decentralized finance apps hit a $1 billion all-time high, before dropping over one project being exploited through so-called flash loans, and over the value of cryptocurrencies going down.
Cryptocurrency wallets have also been making it easier for users to earn interest on DeFi platform, with Coinbase wallet integrating support for these project late last month.
Featured image via Pixabay.