Although our work with decentralized networks and blockchain technology is far from the speculative environment, we can not be alien to the current “DeFi Fever” in Ethereum as it has become the most relevant and at the same time controlled issue of the cryptographic space. In order to take a share of the profits offered by the blocked protocols on the platforms, investors have pushed the Total Value Locked in the DeFi sector to historical highs. At the moment of publication, the TVL in the DeFi sector is at 8.76 billion.
However, the real madness could be about to begin.
Data from the analysis firm Dune, shared by analyst and operator Byzantine General, reveals that participation in this sector has been relatively low. As can be seen in the image below, the number of users who have interacted with the DeFi sector is close to 400,000.
A user, according to the data analysis firm, is equivalent to a single ETH address. Because a particular user may have many addresses, Dune only offers the above figure as an estimate. The number of users may be less.
Considering the small number of users, even if one takes Dune’s initial figure of 400,000, the Byzantine analyst General said that the “DeFi Bubble” might still be far from really exploding. In comparison, there are 113,000,000 unique Ethereum addresses according to etherscan data. So the growth potential for this sector is still very high.
The DeFi sector could also grow if it receives a share of the 50 billion in market capitalization located in “ghost networks”. That is, in some of the less popular or currently dead crypto-currencies and platforms. This is the case of the vast majority of ICO Boom projects.
The total end of the phantom networks seems to be approaching. If you haven’t already burned the tokens there could be over $50 billion in the blockchain market that nobody uses. It’s possible that they will all be moved to DeFi applications with real use at the end of this market cycle.
However, it is necessary to consider that the Ethereum network could soon find itself in a bottleneck. The rapid growth of dApps in the DeFi sector has led to an unprecedented increase in transaction fees. Data from EthGasStation show that the standard rate for a transaction to be validated on the Ethereum network is 128 Gwei. To put this in perspective, in previous years a rate of 10 Gwei is considered high in periods of high congestion.
This data definitely shows a clear perspective of growth of the cryptographic ecosystem of DeFi applications, which has to be celebrated successfully because all these protocols in operation will be further developed and ready to be used in new companies.