ConsenSys shares a report on the Ethereum network’s contribution to decentralized finance. It contains many interesting facts.
Ethereum on DeFi isn’t slowing down
While the cryptocurrency market has cooled down a bit and many investors are wondering if the current time is already a bull market, the Ethereum network is reporting other interesting results. As ConsenSys reports in its quarterly report, at the end of June 2021, the network of the second most popular cryptocurrency recorded as many as 2.91 million addresses that interacted at least once with any DeFi protocol. This is a whopping 65% increase from the quarter before.
“Community-based education, simple user interfaces, and attractive returns drove DeFi’s popularity during the quarter, as did the number of new addresses,” we can read in the report.
Notably, ConsenSys notes that the Ethereum network currently has 165 million unique addresses. In comparison, at the beginning of the year, about 131 million of them could be singled out. This is a significant change in a relatively short period of time, which also directly translates to an increase in their numbers in the decentralized finance space.
Spike in stablecoin supply
According to ConsenSys, another important indicator besides the number of active addresses is the current stablecoin supply. The report shows their dynamic jump in the second quarter, estimating the total issuance around the equivalent of $65 billion. This is an increase of over 60% compared to the result recorded at the end of March.
Tether (USDT), which accounted for 48% of the total Ethereum-based stablecoin market, looks interesting in the list. It recorded a significant decline, as its level of dominance three months earlier was as high as 58%. This means that Tether’s competition has been gaining strength in recent times.
Metamask and its importance
ConsenSys also pointed out that some data can be misleading. We are talking about the number of active wallets such as MetaMask, for example. They allow the creation of multiple accounts, which means that the number of unique users can be and in fact is different from the number of addresses. However, this does not change the fact that MetaMask can be used to identify trends in DeFi. On June 1, the number of active users of the popular wallet exceeded 7.3 million, when as of this moment it is already 1.2 million higher.
MetaMask is a wallet created by ConsenSys, and its popularity has been boosted by the development of decentralized exchanges, which are also largely in the DeFi area.
What does this really mean?
Considering the essence that decentralized finance represents, we can talk here about the ever-growing demand for the services it provides. Moreover, the very growth of Ethereum-based addresses underlines how important this particular network is as an area. It enjoys a very high level of trust while providing a high level of security. And this is all before the full range of scalability is achieved and before the planned move to Proof of Stake consensus. This means that great times could be painted for Ethereum.