2020 is the year of DeFi. With the emergence of liquid mining, this field has attracted more and more investors and developers' interest. The new incentive model allowed the industry to grow by more than 10 times in the third quarter.
Analyze the transaction volume, total lock-up value, daily active wallet, and income of the DeFi ecosystem (decentralized financial protocol and decentralized trading platform) of the three main platforms of Ethereum, TRON and EOS:
- In the DeFi ecosystem, Ethereum transaction volume accounts for 96% of the total transaction volume
- The total locked position value exceeds 10 billion U.S. dollars
- Ethereum, TRON, and EOS active wallets account for 97% of the total
- The combination of the distribution of governance tokens and liquidity mining has become the key to the successful growth of dapps
- Uniswap's trading volume hit a record high, followed by SushiSwap and Balance
- Binance and other blockchain protocols are eager to join the DeFi field
The third quarter of 2020 is the best quarter of the DeFi ecosystem so far. As has been reported, the transaction volume of the DeFi ecosystem exceeds $123 billion, of which 96% belongs to Ethereum.
Trading volume is not the only indicator that is rising rapidly. According to DappRadar DeFi, compared to the end of the second quarter of 2020, the total lock-up value has soared by 380%, reaching $10 billion by the end of the third quarter of 2020.
The top three on TVL are Uniswap, MakerDAO and Curve. The recent increase in Uniswap's lock-up volume is mainly driven by the liquidity mining of UNI governance tokens.
In terms of daily activity wallets, Ethereum accounts for more than 57%. EOS and TRON accounted for 5% and 35% respectively. Ethereum, TRON, and EOS active wallets accounted for 97% of the total.
The biggest contributors on Ethereum are Uniswap, Sushiswap, Balancer and Compound. Together they created 56% of daily active wallets.
In the EOS DeFi agreement, the biggest contributors are Defibox and Dmd.Finance. Over 4300 active wallets use these two protocols every day.
And TRON’s JUST, Zethyr Finance, and Oikos.cash, as well as new projects such as Sun, Unifi Protocol, and SharkTron, have collected more than 32,000 daily active wallets using these protocols.
Obviously, the combination of the distribution of new governance tokens and liquidity mining has created unprecedented popularity. This also effectively helped Ethereum consolidate its leadership in the third quarter.
Although Synthetix was the first project to start large-scale publicity of liquid mining, the first thing that really made it popular was Compound.
The COMP token was introduced in June, and immediately we observed an explosion in transaction volume in the DeFi ecosystem. In the second half of June alone, Compound's transaction volume increased by 27 times, reaching US$4 billion.
At the end of August, a project called Sushiswap was launched, shaking up the DeFi ecosystem. The project is based on Uniswap and aims to transfer liquidity from Uniswap. In return, SUSHI tokens will be distributed to users. In September, the transaction volume of the project exceeded USD 6 billion.
The last and most important agreement is Uniswap and its token UNI. On September 17, Uniswap suddenly announced the launch of the governance token UNI, which caused its trading volume to peak instantly. Uniswap created a turnover of 33 billion US dollars in September, accounting for almost 60% of the total transaction volume.
Under this heat, DeFi has created millions of dollars in revenue. According to data from tokenterminal.com, users have spent US$59 million on GAS fees in the past 30 days.
The largest share comes from Uniswap, which is $33 million. And Balancer won the second and third place respectively. These three dapps together accounted for 82% of GAS fees.
Although the level of development of Ethereum is surprising, one of the main problems hindering its development is network congestion. GAS FEE reached an unbearable level in the third quarter of 2020. During peak periods, transaction costs exceeded 400 Gwei.
With Ethereum 2.0 still under development, Cardano provided a viable PoS alternative to DeFi projects, and the mainnet Shelley of Cardano completed the upgrade at the end of July.
Second, Polkadot's market value has risen sharply recently. According to Coingecko's data, Polkadot has become the top 10 project by market capitalization. Polkadot is a blockchain optimized around interoperability that enables you to move any type of data across chains.
There is also Binance, which joined the DeFi field in August and launched a new futures product based on the DeFi composite index. In less than a month, Launchpool was online. The first project launched in Launchpool is Bella Protocol (BEL), users can directly mine BEL on the platform for liquidity.
In the third quarter of 2020, all indicators of the DeFi ecosystem have reached the highest level in history, and Ethereum leads the ecological development of DeFi.
Ethereum has become the preferred platform for DeFi projects due to its richness of tools and projects. In the third quarter of 2020, popular projects Compound, Balancer, SushiSwap and Uniswap were all established on Ethereum.
The problem of Ethereum congestion creates possibilities for other blockchains. Some well-known platforms have shown increasing interest in DeFi, among which Binance is the most active.