The DappRadar released an annual report, according to which the volume of transactions in Defi projects increased more than 12 times in 2020.
The DApp Industry Report suggest that the total volume of transactions in the decentralized finance industry for 2020 exceeded $270 billion, and 95% of the transactions were performed on Ethereum network.
“It seems that the defi revolution has attracted increased attention because of high monthly based returns than banks,” the analysts wrote.
DappRadar also noticed that funds flowed from Bitcoin to Ethereum throughout the year. In the beginning of the year the rate of ETH against BTC was 0.018 BTC, then by the end of the year, it increased to 0.028 BTC.
The main reason for this popularity was profitable farming when users deposit funds in Defi applications and receive a reward.
87% of transactions volume goes to only ten projects. The number of users exceeded 1 million people, while the audience of the three most popular sites was 930,000 people.
Analysts noted that in 2020, the limitations of Ethereum became clear. The lack of scalability and network bandwidth has led to a significant increase in transaction fees.
Equally important, Defi hacks, fraud, and loss of funds were common in 2020. Twelve notable hacks were committed this year resulting in millions of Dollar loss.
Smart contracts of DFefi projects often do not pass a proper security audit, and some projects, such as Compounder Finance, are created specifically to raise funds and make an exit scam.
Dappradar analysts expect that in 2021, the defi industry will play an even more important role and form the foundation for the cryptocurrency economy.
Key Points Of DappRadar Report
- Dapp’s transaction volumes topped $ 270 billion, with 95% represented by Ethereum’s Defi ecosystem.
- The total locked value (TVL) and adjusted TVL (aTVL) among the top Ethereum dapps tracked by DappRadar reached record figures in 2020 of $ 13 billion and $ 11 billion, respectively.
- In 2020, 238 new Defi dapps were sent to DappRadar. Of these, 106 (45%) run on the Ethereum blockchain.
- Overall, 1,353 new dapps were sent to DappRadar in 2020. Of these, 424 (32%) run on the Ethereum blockchain.
- Scalability issues weren’t the only challenge faced in 2020. The increased use of dapps resulted in multiple exploits and hacks amounting to more than $ 120 million.
- Following the implementation of performance cultivation initiatives in the NFT market, Rarible’s unique active wallets increased from around 200 to more than 1,500 in September 2020.
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