Since the beginning of this year, the decentralized finance, or in other words the DeFi sector has been growing well and has seen a huge influx of investors so far this year because of its rising popularity. It clearly seems that the year 2020 belongs to the DeFi industry.
Amid this DeFi sectors’ potential growth, the world’s second-largest blockchain Ethereum has managed to re-establish itself as the number one DApp platform in the industry according to a recent Q2 DeFi 2020 report shared by DappRadar.
Ethereum is the major beneficiary of the DeFi boom
The potential growth of the decentralized finance market seems to have influenced the Ethereum network in various ways. During this time, Ethereum, in the decentralized finance sector, has been the center of the attention of developers as well as users. According to the DappRadar report, Ethereum is one of the major beneficiaries of the DeFi boom:
“2020 has been the year of DeFi. With the emergence of liquidity mining, the sector has seen a flood of investor and user capital as well as developer interest…The Ethereum ecosystem has been the main beneficiary of the DeFi wave, but key competitors are now looking to replicate its success on their own network.”
There have been some concerns about the rising transaction fees and scalabilities issues of the Ethereum network in recent times but in spite of this, it has succeeded in re-establishing itself as the top DApp platform which is quite interesting.
The amount of ETH locked in DeFi reaches 4.3 million
Currently, a large number of developers are using the Ethereum blockchain for developing DeFi applications and several apps are being developed on this blockchain. According to the DappRadar report, the amount of ETH tokens locked in the DeFi has also surged high to reach 4.3 million. This shows that Ethereum is continuously being used in the DeFi sector by developers and users.
The report further claims that Tron has also seen great usage by users in the sector but it is still far away from reaching Ethereum or becoming an alternative to it.