- Ethereum DeFi apps surge 778% in Q1 2020, compared to Q1 2019
- Ethereum DApps as a whole saw $5.67 billion in volume in just Q1 2020
According to a new report by DaapReview, Ethereum DeFi apps surge 778% in Q1 2020 amid the Coronavirus COVID-19 outbreak. The report mentions DeFi app growth was one of the primary drivers in Ethereum network growth.
DeFi, also known as decentralized finance, is the use of digital assets, smart contracts and other blockchain technology for financial activities. The leader in the DeFi space is Ethereum as it offers a scalable smart contract platform for DeFi app developers.
Compared to Q1 2019, DeFi based apps on the Ethereum blockchain have seen a significant increase in volume.
As more and more use cases of DeFi, a total of 31,299 addresses have interacted with Financial dapps, increased by 234.86%.DaapReview
In addition to the surge in volume of new DeFi apps, the platform has also seen far greater interaction with DeFi apps. Thus, we can infer than in addition to new DeFi app creation, adoption for the technology is also increasing.
DeFi and COVID-19
The Ethereum network has seen a recent surge in activity, as reported earlier by The Crypto Associate.
It is possible that DeFi growth in Q1 2020 is directly correlated with Coronavirus COVID-19. As global markets fall many financial institutions have begun to adopt DeFi based solutions as they offer quicker, cheaper, and reliable transfers. Furthermore, blockchains aren’t influenced by global events and thus, continue to function during a crisis.
Regardless of the cause of this rapid growth, increased adoption is a good sign as it shows promise in the underlying technology rather than pure price speculation.
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