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Ethereum DeFi Broke Records As Other Categories Struggle

As per the results of the second quarter of 2020, there has been a growth for decentralized applications across all ecosystems, which has been led by  Ethereum (ETH) decentralized finance or DeFi.

The decentralized exchanges were at the frontlines of the rise as Compound token mining activity trickled down to on-chain swapping solutions. Asper Out Network, Curve has been the biggest beneficiaries of yield farming as it helped users switch between different stablecoins to maximize yield.

A report in CoinTelegraph said that curve is an automated money market that only supports swaps between different types of stablecoins and wrapped tokens. This limitation allows Curve to provide competitive slippage and fees for exchanging assets.

It is also understood that deposits on Curve rose three times in June, while daily volume reached peaks of $60 million, 30 times more than its previous average.

Meanwhile, demand for USDT pairs was the highest, capturing more than 58.5% of the total volume. This is due to USDT having one of the most significant COMP yields for an extended period of time.

Uniswap also benefited from the COMP craze, with monthly volume doubling in June, the report read. 

Kyber and 0x had more modest performances: despite posting fresh monthly highs, the project’s growth was in line with the rest of the year, it added. 

According to DappRadar’s Q2 report, the dominance of DeFi indirectly led to the decline of gaming activity. Over $8 billion was transacted on DeFi platforms in Q2, which led to gas prices soaring exponentially.

Ethereum’s vibrant gaming DApp ecosystem suffered as fees came to represent a significant portion of each transaction. DappRadar reported a staggering 79% decline of gaming-related activity on-chain over the previous quarter.

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