ETH Addresses Using DeFi Increased 65% In The Previous Quarter

ETH addresses using DeFi increased 65% in the previous quarter and the boom corresponded with the increase in the supply of stablecoins as we can see more in our latest Ethereum news today.

The ETH addresses using DeFi are on the rise and Defi protocols hold one-quarter of all USDC stablecoins.
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The second quarter of 2021 was the biggest one yet for the DeFi protocols on the Ethereum network. From April through June, the number of ETH addresses increased 10% as per consensys Q2 DeFi Report while the number of addresses that used a Defi protocol expanded by 65%. DeFi is an umbrella term for blockchain-based protocols which remove banks and other intermediaries from financial transactions. With it, sellers are able to swap tokens with buyers, holders can earn crypto for depositing funds and traders can take out loans so speculators can make bets on the price movements.

While DeFi applications are available on plenty of other networks, like Solana, Binance Smart Chain, they initially started on Ethereum and now there are nearly $70 billion in assets tied up in the DeFi protocol. Consensys wrote in its report:

“As community driven education, simple user interfaces, appealing yields, and general awareness around DeFi best practices increased throughout the quarter, so too did the number of new addresses.”

By the start of July, 2.91 million ETH addresses interacted with DeFi protocols like decentralized exchange Uniswap, Compound, and KeeperDAO. With Defi’s big boost during the first half of 2021, there was a huge increase in stablecoin supply which stood at $65 billion by the start of July which marked a 60% increase in the dollar-pegged assets since March 31. Leading the way was Tether with accounts for half of the stablecoins on ETH and USDC got widely used as one-quarter of the coins in defi lending protocols.

The benefit of stablecoins is that they can be purchased with dollars and traded for other cryptocurrencies without having to go back into the traditional financial system. As crypto prices surged over the quarter, speculators and investors will hold onto stable coins while they wait for the right time to enter the market. Now we are in the third quarter for over a month which hasn’t been all pink as the Q2 in its peak. The number of funds locked into Defi protocols inched back towards where it was in June and the same goes for the price of ETH, the strength of which is correlated with the network usage. With the Ethereum community’s eyes set on the London upgrade, it will change how transaction fees are structured on the network and many will be anxious to see whether it will spur more Defi growth this quarter.