The DappRadar portal has released an annual report, according to which the volume of transactions in DeFi applications increased more than 12 times in 2020.
The DApp Industry Report reports that the total volume of transactions in the decentralized finance industry for 2020 exceeded $270 billion. At the same time, 95% of the volume falls on the Ethereum network.
“It seems that the pandemic has attracted increased attention to decentralized applications amid talk about the distribution of basic universal income,” the analysts wrote.
DappRadar specialists also noticed that funds flowed from bitcoin to ether throughout the year. If at the beginning of the year the rate of ETH against BTC was 0.018 BTC, then by the end of the year it increased to 0.028 BTC.
The catalyst for this was the popularity of the field of “profitable farming”, when users block funds in DeFi applications and receive a reward for this.
87% of the volume of transactions in the industry was made by users of only ten projects. The number of users of these applications exceeded 1 million people, while the audience of the three most popular sites was 930,000 people.
Analysts noted that in 2020, the limitations of Ethereum became apparent, which hinder the development of the industry. The lack of scalability and network bandwidth has led to a significant increase in transaction fees.
Equally important, DeFi app hacks, fraud, and loss of funds were common in 2020. In total, 12 major hacks were committed this year, as a result of which funds worth $120 million were stolen.
Often, smart contracts of projects do not pass a proper security audit, and some projects, such as Compounder Finance, are created specifically to raise funds and make an “exit scam”.
DappRadar analysts expect that in 2021, the DeFi industry will play an “even more important role” and “form the foundation for the cryptocurrency economy” for any decentralized applications.
Earlier, Bits. media published a large-scale article about trends in the development of the DeFi industry.