DeFi dApps show low growth compared to Ethereum activity, JPMorgan finds

Over the past year, DeFi’s rise has been aggressive in terms of prices; however, this is just the face value as its growth, volume-wise, leaves a lot to discuss.  This was revealed by an analysis carried out by strategists at JPMorgan.

DeFi’s growth has been slow but steady

According to the report, DeFi’s growth, in terms of dollar rise of Ethereum, is up by 780% this year. ETH, the native token of the second largest crypto asset by market cap, has risen by 540% in this year alone to over $4700.

However, when the volume of the number of ETH tokens locked in the space is considered, the growth of the space is at a slow pace of 50% in 2021.

Per Bloomberg:

“The Ethereum network now has about a 70% share of DeFi activity, versus a near-total lock at the start of the year, the team added. The 50% estimated expansion adjusts for this shift.”

The analysts pointed out that the space is still at its early stage and that the major concerns remain that of regulations. The analysts wrote:

“There is little doubt that DeFi is still at early stages and thus has a lot of potential to grow over time, but until it becomes mainstream it faces several hurdles, especially regulatory.”

It is important to note that the Securities and Exchange Commission (SEC), alongside other regulators, have begun to pay more attention to the nascent crypto space.

DeFi in 2021

In one of our recent reports detailing the growth of DeFi, we revealed that the space has seen the total value locked rise to over $250 billion. As of this same period last year, the figure was less than $10 billion.

In another report, DeFi’s growth is being bolstered by its usage in America. According to the report, “the region saw a 1000 percent surge in its transaction volume as it moved from $14.4 billion to $164 billion between June 2020 to May 2021.”

The post DeFi dApps show low growth compared to Ethereum activity, JPMorgan finds appeared first on CryptoSlate.

Read Entire Article


Add a comment