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• second quarter of 2021 was strong for Ethereum-based DeFi protocols.
• Multiple addresses interact with DeFi.
• DeFi protocols contain almost a quarter of all USDC stablecoins.

second quarter of 2021 was the largest yet for decentralized finance (DeFi) protocols on Ethereum Net.

From April to June, the number of Ethereum addresses increased by 10%, according to the ConsenSys Q2 2021 DeFi Report released today, while the number of addresses using a DeFi protocol increased by 65%.

DeFi is the generic term for blockchain-based protocols that remove banks and other intermediaries from financial transactions. With DeFi, sellers can trade tokens directly with buyers, holders can earn cryptocurrencies to deposit funds, traders can apply for loans, and speculators can bet on price movements.

Although DeFi apps are available on a handful of networks, including Binance and Solana Smart Chain, they started on Ethereum, where most of it remains. re is almost $ 70 billion in assets subject to DeFi protocols, per DeFi pulse.

“As community-driven education, simple user interfaces, attractive returns, and general awareness of DeFi best practices increased during the quarter, so did the number of new directions,” the development company wrote. of software. ConsenSys (which provides funding to an independent publisher decrypt agency). He went on to point out that users can have multiple addresses.

In total, as of early July, 2.91 million Ethereum addresses had interacted with DeFi protocols such as decentralized exchange. Uniswap, Composite cryptocurrency lender, or KeeperDAO liquidity fund.

DeFi’s big boost in the first half of 2021 was a big increase in stablecoin supply, which stood at $ 65 billion in early July. This marks a 60% increase in assets pegged to the dollar since March 31. It was to open the Unir path, which accounts for almost half of all stablecoins on Ethereum. USDC is also widely used; According to ConsenSys, nearly a quarter of the USDC is on DeFi lending protocols.

advantage of stablecoins is that they can be bought with dollars and then exchanged for other cryptocurrencies without having to go back to the traditional financial system. As cryptocurrency prices rose and faded in the last quarter, speculators and investors were able to hold onto stablecoins while waiting for the right moment to enter the market.

We are already more than a month into the third quarter, which was not as optimistic as the second quarter during its peak. amount of funds frozen in DeFi protocols has just returned to where it was in early June. same goes for the price of Ethereum, whose strength is related to the use of the network.

And with the eyes of the Ethereum community on this week’s London update, which will change the way transaction fees are structured on the network, many will be eager to see if that spurs further DeFi growth this quarter.

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