A new report by Dune Analytics published on Friday (4 December 2020) revealed that the decentralized finance (DeFi) ecosystem has hit more than one million Ethereum addresses, as consumers show continuous interest in the network.
To put that into context, the DeFi ecosystem began with some 91,000 addresses on December 6 2019. This has clearly changed, with the decentralized finance solution quickly gaining steam and seemingly climbing to the top.
The steady climb to the top began in mid-2020 and has been exponential throughout the rest of the year so far, Richard Chen from Dune Analytics said.
Chen acknowledged, however, that many users tend to open multiple addresses to ensure complete privacy.
According to Brian Flynn, co-founder of Rabbithole, the actual number of participants is much lower. In fact, the unique consumers may be just 10 or 15% of these numbers. However, the ecosystem is tipped to grow more, Flynn confirmed.
For this to happen, though, the ecosystem will have to move away from speculation and boost participation and understanding.
People can swap a token on Uniswap but they are unwilling to provide liquidity, Flynn noted.
The overall focus moving forward in boosting DeFi should be boosting consumer understanding.
Another issue may be that DeFi is currently used by a singular demographic, or tends to be, whereas the ecosystem would benefit if it diversified its demographic targeting.
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