96% of the decentralized finance’s (DeFi) transaction volume is based on the Ethereum network, as the yield farming trend saw movers adopt DeFi at a record pace in the third quarter of this year.
According to a report published by DappRadar, first reported on by Decrypt, the total value locked in the decentralized finance space surged 380% from the end of Q2 2020 to reach $10 billion by the end of the third quarter of the year.
Similarly, transaction volumes skyrocketed to surpass $123 billion, with 96% of the volume occurring on the Ethereum network. Uniswap, Curve, and MakerDAO lead the way in total value locked.
Decentralized exchange Uniswap, along with Sushiswap, Balancer and Compound, made up 56% of the daily active wallets on EH, which itself had over 57% of the daily active wallets in DeFi.
Behind Ethereum came TRON, with 35% of the daily active wallets, followed by EOS at 5%. These three cryptocurrencies together accounted for 97% of the daily active wallets.
The report points out that the EOS protocol has picked up momentum in Q3, thanks to decentralized finance protocols like Defibox, DeFis Network, and Dmd.Finance, which generated over 4,300 daily active wallets. On TRON, projects like JUST, SharkTron, and Zethyr Finance created over 32,000 daily active wallets.
The decentralized finance space seemingly grew exponentially over the third quarter thanks to the yield farming – or liquidity mining – trend, that sees users interact with protocols in order to receive rewards in their governance tokens.
The trend started with lending protocol Compound and its COMP governance token. Users are rewarded COMP for lending and borrowing funds on Compound, effectively raising their yields. Users quickly moved funds to protocols launching their own tokens to maximize returns.
DappRadar’s report also notes that a total of $59 million worth of fees were generated by DeFi projects. The largest share of the earnings went to Uniswap, which made $33 million. It also adds IOST, Ontology, and NEO entered the DeFi space in Q3.
Featured image via Pixabay.