Ethereum Still King of DeFi but Other Protocols Are Fast Gaining Traction
DappRadar’s Q3 2020 Decentralized Finance Report shows that Ethereum-based protocols including Uniswap (UNI), Sushiswap (SUSHI), and Balancer (BAL) accounted for a massive 96 percent of total transaction volume in the DeFi space. However other protocols including EOS, Tron (TRON), IOST (IOST), Ontology (ONT) and NEO (NEO) have also started to gain significant traction.
Yield Farming Sends DeFi to the Moon
Despite the scalability issues and crazy gas fees associated with Ethereum and its DeFi protocols, DappRadar’s Q3 2020 decentralized finance ecosystem report has revealed that the network behind the world’s second-largest cryptocurrency is still very much the leader in the space.
As stated in the report, the yield farming craze has succeeded in ushering in a new wave of investors and developers into the DeFi space, effectively growing the industry by more than 10x, with Ethereum alone accounting for 96 percent of the total transaction volume.
The report notes that Q3, 2020 was the best period for the DeFi ecosystem, as total transaction volumes surpassed the $123 billion mark, with Ethereum-powered protocols accounting for a massive 96 percent of that volume, while other platforms including EOS, Tron and IOST managed the remaining four percent.
What’s more, the report also notes that the total value locked (TVL) in DeFi protocols also surged by 380 percent hitting $10 billion, with yield farming platforms like Uniswap, MakerDAO and Curve Finance maintaining the highest TVL.
Other Blockchain Protocols Gaining Traction in DeFi
Interestingly, the report has revealed that other leading blockchains including EOS, and Justin Sun’s TRON have now started gaining significant traction in the DeFi ecosystem, as they both account for five and 35 percent of the daily active wallets, while Ethereum make up 57 percent.
Specifically, Defibox, Dmd.Finance and DeFis Network occupy the frontline of the EOS DeFi ecosystem, generating over 4,300 daily active wallets, while TRON’s ecosystem was boosted by dapps like JUST, Zethyr Finance, Oikos.cash, Sun, Unifi Protocol, and SharkTron which generated a total of 32,000 daily active wallets.
Notably, IOST (IOST), an ultra-fast, decentralized blockchain network focused on accelerating mass adoption of distributed ledger technology (DLT), has also started gaining traction in the DeFi space, as its daily active wallets increased by 357 percent in Q3, 2020.
In the same vein, Ontology (ONT), and NEO (NEO) also made a serious DeFi statement in Q3, 2020, with their daily active wallets surging by 1,589 percent and 840 percent respectively.
At press time, the combined total value locked (TVL) of the entire 43 DeFi protocols currently alive sits at $10.88 billion. Uniswap remains the number one DeFi protocol in the world, maintaining a 23.93 percent dominance with a TVL of $2.58 billion, as seen on DeFiPulse.