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DeFi in the first quarter: DeFi users only account for 1% of the total addresses of Ethereum



Keywords for the first quarter of 2021: Number of users (increase) NFT (hotness) Stable currency (new gameplay) DeFi (solution to solve high gas fees) Decentralized finance (DeFi) refers to the transition from traditional centralized finance The shift of the system to peer-to-peer finance powered by the Ethereum blockchain. From stablecoins, lending, prediction markets, margin trading, payments, insurance, gaming, and NFT markets, the DeFi ecosystem now represents a vast network of protocols and financial instruments worth over $53 billion. Fundamentally, these financial activities are different from centralized financial activities for the following reasons: DeFi applications are deployed as smart contracts, and the rules/logic of the application are written as code instead of being enforced by companies and legal documents. They are global and permissionless - anyone with an internet connection can interact with them. DeFi applications are composable. A DeFi smart contract or application can be used by other smart contracts or more complex applications, and almost all DeFi smart contracts are public open source code, which means that the entire financial system is built in the open. Looks like money has gone digital. We can pull out our phones and use Venmo to send money to friends. Decentralized finance takes this a step further — even the currency itself is digital, programmable, and verifiable on Ethereum’s blockchain. One of the main benefits of DeFi on Ethereum is that financial activities are transparent and settled in real time. Wallets like MetaMask allow anyone across the globe to trade assets on decentralized exchanges like Uniswap. If someone else controls the financial rails, who the hell owns the assets we trade? Report: $2.5 Billion Financing in the Blockchain Gaming Sector in the First Quarter of This Year: April 20 News, DappRadar and Blockchain Games The blockchain game report released by the Alliance (BGA) indicates that 2022 will be the benchmark year for cryptocurrency game developers. According to the report, $2.5 billion was raised in the first quarter of this year alone. The report predicts that by the end of 2022, the amount of financing in this field may surge by 150% compared with last year to US$10 billion. In 2021, the financing amount in the field of blockchain games will be US$4 billion. Last month, blockchain games attracted 1.22 million unique active-zce wallets (UAW), which currently account for 52% of the active-zce data in the blockchain industry. (Decrypt) [2022/4/20 14:37:03] As of January 1, 2021, there will be approximately 130 million Ethereum addresses. As of April 1, 2021, there are currently 146 million Ethereum addresses, an increase of 12% from the beginning of the year. MetaMask is the gateway of Ethereum and the "leading" wallet in the field of cryptocurrency, with more than 5 million monthly active-zce users. How many of these addresses use DeFi protocols? Still not many, it turns out. Despite a 50% increase in DeFi users this quarter, a 10-fold increase from Q1 2020, there were still 1.75 million addresses using at least one DeFi protocol by the end of Q1. Despite this, DeFi users only account for about 1% of the total addresses of Ethereum. Ontology released its roadmap for 2022, and Ontology EVM will be launched in the first quarter: Official news, Ontology released its roadmap for 2022, with the goal of becoming the blockchain of choice for Web3 applications. 1. Decentralize identity and data, continue to optimize deeper product integration across different blockchains. 2. Multi-virtual machines, Ontology EVM will be launched together with the EVM Fund in the first quarter of 2022 to incubate the development of Ontology applications. 3. Web3, continue to develop ONT ID, ONTO Wallet, Wing Finance, SAGA, etc. [2022/1/7 8:31:43] While all of this growth has been incredibly beneficial to the entire crypto ecosystem, the increased demand does create some challenges for the network. The median gas fee price rose from about 100Gwei at the beginning of the year to about 150Gwei on March 31, and ETH rose by 50%. At the same time, the price of ETH also rose from $732 to nearly $2000, plus the dollar value of the gas fee that users need to pay. The increase in gas fee price and ETH price caused the average transaction fee to increase from $5.4 at the beginning of the year to $22.9 at the end of the first quarter, an increase of about 4.2 times. In the first quarter of 2021, Ethereum’s total fees are twice that of the Bitcoin blockchain. Uniswap charges nearly half of Bitcoin's fees, which are revenue generated by liquidity providers of various tokens. For other DEXs, such as Curve, some of these fees will actually go to the vault fund itself. In the future, these fees may be distributed to users based on the amount of tokens they hold, or their vaults may be used to buy back tokens on the open market. They can also accumulate the value of the DeFi asset itself. Robinhood expects to launch the cryptocurrency wallet by the end of the first quarter of 2022: Robinhood said that there are currently more than 1.6 million people on the waiting list for the cryptocurrency wallet, and the company expects to launch the cryptocurrency wallet by the end of the first quarter of 2022. (Golden Ten) [2021/11/10 6:42:46] In the first quarter, the continued growth of DeFi matched the corresponding increase in the supply of stablecoins on Ethereum. Considering that stablecoins are the primary medium of exchange, stablecoins can be leveraged in DeFi applications to earn yields as loans, return on investment for liquidity providers (LP), or as collateral for synthetic products, this correlation makes sense . Ethereum’s total stablecoin supply nearly tripled from $19.5 billion on Jan. 1 to $37.4 billion on March 31. Looking at the yearly data, this trend is even more pronounced, as the supply of stablecoins has increased nearly sevenfold from $5.5 billion at the end of Q1 2020 to $37.4 billion at the end of Q1 2021. Ethereum is not only the settlement layer for almost all leading dapps, but also for almost the entire digitized dollar ecosystem. On March 31, the total supply of stablecoins was approximately $42 billion, more than 4 times the total supply at the end of the fourth quarter. Even traditional financial services companies like Visa will allow settlement of transactions against USDC on Ethereum, showing that stablecoins are moving far beyond the use cases of traditional cryptocurrencies. Additionally, demand for algorithmic stablecoins with novel peg structures continues to rise. Recently, the Fei protocol raised 639,000 ETH, which is about $1.27 billion at current prices. Fei uses a new stabilization mechanism called direct incentives, using dynamic minting rewards for DEX volume and penalties for DEX volume to maintain the stablecoin's pegged exchange rate. Their mechanism does not require an over-secured debt system to achieve stability, which makes it different from MakerDAO's DAI. They use bonding curves to maintain a peg. However, these new algorithmic stablecoins pose significant challenges. Due to the way the protocol is designed, it becomes impossible to sell FEI tokens because its liquidity pools price the tokens at a negative value, and the rebate mechanism for buying is prohibited due to loopholes in the system. Facebook did not disclose its Bitcoin holdings in the first quarter financial report: Golden Finance reported that Facebook announced its first quarter 2021 financial report today. Facebook's revenue in the first quarter was US$26.17 billion, with market expectations of US$23.537 billion; net profit of US$9.497 billion, with market expectations of US$6.797 billion. According to the financial report, Facebook does not hold Bitcoin directly on its balance sheet. Prior to the news on April 27, several crypto community leaders were discussing rumors that Facebook might hold Bitcoin on its balance sheet. According to Twitter rumors, Facebook has Bitcoin on its balance sheet and will reveal it after its quarterly earnings report. [2021/4/29 21:09:09] Other algorithmic stablecoins use elastic supply to maintain their pegs. Ampleforth is a leader in elastic supply algorithmic stablecoins. When the price is above the peg, the total amount of Ampleforth increases. Therefore, if we have AMPL in our wallet, our AMPL balance will actually increase correspondingly because the new AMPL distribution means lower prices. When the price is low, Ampleforth actually reduces the supply, which causes the wallet supply to decrease. Algorithmic stablecoins based on elastic supply are far more volatile in price than dollar-backed stablecoins, with AMPL falling to lows of 32 cents and rising to highs of $4. In the first quarter of 2021, every segment of DeFi benefited from a 50% user growth. The trading volume of DEX has increased from about US$25 billion in December last year to US$63 billion in March this year, an increase of 2.5 times. Uniswap’s weekly trading volume increased almost 1.6 times from about $5 billion in the first week of January to about $7.8 billion in the last week of March. Interestingly, Sushiswap’s weekly DEX trading volume has declined, from about $2.6 billion in the first week of January to about $1.9 billion in the last week of March, a drop of about 27%. Voice | Liu Yixiang: The government will issue a virtual bank license in the first quarter of this year: According to a Hong Kong Economic Journal report on March 1, Liu Yixiang, Hong Kong’s Secretary for Financial Services and the Treasury, said that the financial services industry has contributed a lot to Hong Kong’s economy, accounting for The GDP is 18.9%. The government needs to focus on technological innovations such as blockchain and big data in the future. He pointed out that the government will issue virtual banking licenses within the first quarter of this year to provide new service products such as remote account opening. As for the approval of start-up companies to open accounts, he said that banks are still encouraged to be risk-based, because when companies use cryptocurrencies as their main business, there are still risks such as money laundering. [2019/3/1] From January 1, 2021 to March 31, 2021, the outstanding loans of DeFi increased from about 3.6 billion US dollars to 10.8 billion US dollars, an increase of 3 times. During the first quarter, approximately $3.3 billion worth of assets were borrowed, a 2.75-fold increase from approximately $2.75 billion in net borrowing in the fourth quarter. Aave has experienced similar growth. From January 1 to March 31, Aave's total outstanding loans increased nearly 2.4 times from $670 million to approximately $1.6 billion. With the base exponential growth of DeFi projects from users to Total Value Locked (TVL), we should not be surprised that the market recognizes these improvements in the ecosystem. DPI is a decentralized financial market capitalization-weighted index token that tracks leading DeFi-related digital assets (AAVE, Synthetix, Uniswap, Yearn Finance, Compound, Maker, REN, Loopring, Kyber Network, and Balancer). It rose from about US$117 on March 31 to US$410 on March 31, an increase of 3.5 times. During the same period, BTC only increased by 2 times, which indicates that the growth of the value of DeFi assets may be related to the increasingly strong fundamentals, and not just driven by the overall popularity of digital assets. However, high fees are an ongoing problem for DeFi users. Therefore, DeFi developers want to move their applications and users to layer 2 to take advantage of lower gas fees. The TVL of layer 2 increased from $38.4 million on January 1 to $273.4 million on March 31, an increase of 7.1 times. DeFi applications, such as Synthetix and dYdX, have announced that they are actively working on integrating with layer 2 solutions. Synthetix has been working with Optimsm for several months, and dYdX recently announced that their new cross-margin perpetual investment is on Starkware's STARK-based Rollups solution. We expect this trend to become more prominent throughout the remainder of the year. Google searches for the term “NFT” reached an all-time high in early March. The search-zce amount is relative to 0 ~ 100, and 100 is the maximum value within the specified time period. Google searches for NFTs reached 100 on March 12. NFTs are essentially data minted on the blockchain as liquid intellectual property. This data can be art, game virtual goods, reputation scores, access to private networks, etc. The rapid growth of NFTs can be attributed to a variety of factors: due to the coronavirus pandemic, the income-generating activities of many artists have disappeared, and people are spending record time on the Internet. The global pandemic has changed the way we use the internet. NFT transfers the default ownership of digital IP from the platform to the creator, and 62% of artists are currently unemployed. Before the pandemic, visual artists had few, many mediums through which to reap the benefits of art; creating commissioned artwork, illustrating corporate settings, side hustles, and/or wealthy parents. The virus pandemic has created a favorable environment for artists addicted to the Internet and out of work, enabling them to monetize their works, and NFT trading platforms have emerged, including technical requirements to support the development of NFT trading standards. By the end of 2020, the total market value of NFT encrypted art was $52,293,650 (42,720 ETH), with 53,663 unique artworks sold on the top five platforms. Currently, the total market value of encrypted artwork is $490,242,627.92 (244,953.521 ETH), with a total of 151,977 artworks sold in the past 30 days. In contrast, the transaction volume of the global traditional art market has steadily declined due to the epidemic. In 2018, the global art market was worth more than $67 billion and is currently worth $50.06 billion. According to the 2019 Art Basel and UBS Global Art Market Report, 92% of millennial collectors said they had purchased art online, but the report did not include NFT art sales. Today, millennials make up nearly half (49%) of global collectors and are also the most active-zce consignors, with 71% of millennial collectors saying they have resold works from their collection, while baby boomers Only one third of the house.


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