The DeFi industry continues to attract many people actively seeking profit and financial opportunities. Numerous blockchains exist for decentralized finance purposes, all of which provide something unique. As Ethereum DeFi now surpasses 3.4 million unique addresses, the ecosystem crosses a crucial threshold.

Ethereum DeFi Users Keep Rising

It is intriguing to see how popular decentralized finance remains today. Numerous projects have come and gone, with various hacks and thefts in between.  A very problematic endeavor for the DeFi industry, as millions of dollars have been lost in the past year. Most of those funds will never be recovered, which would cripple any other industry. Decentralized finance is a different creature altogether, judging by the number of users. 

More specifically, there are nearly 3.5 million unique addresses associated with DeFi protocols and services on Ethereum. A significant amount, even though the growth has become less steep in the scone half of 2021. There are still many people who have never associated any of their addresses with Ethereum DeFi, though. As new protocols still come to market every week, it will be interesting to see how these statistics evolve in the future. 


Source: Dune Analytics

The big question is whether the established platforms will continue to maintain their dominant positions. Looking at Compound, the growth curve has begun to flatten significantly. That isn’t necessarily surprising, as users may want to explore bigger gains over slow and steady profit through established protocols. There is so much competition these days, and profit potential is on most people’s minds.

Innovation is a crucial aspect of decentralized finance. There have been dozens of new projects in recent months, although lending protocols still dominate the space. Changing that narrative will prove difficult, as Ethereum’s network fees remain rather expensive, preventing projects from reaching their full potential. Hopefully, things will improve when ETH 2.0 launches, whenever that may be. 

Individual Project Growth

Several Ethereum DeFi projects still note impressive growth curves this late into 2021. That list includes Uniswap, SushiSwap, 1Inch, Curve, Tornado Cash, 0x, and others. An impressive development, although other protocols are struggling a bit. However, that is only normal and a clear sign of how developers need to keep pushing the boundaries of their ecosystem to remain relevant.

Platforms like PoolTogether, Yearn, MakerDAo, dYdX, and Kyber will need to find new ways to attract users and retain their existing clients. So far, no main platforms are noting negative growth as of yet, although that situation can always change. The coming months will prove crucial for decentralized finance on the Ethereum blockchain.