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Ahead Of All: Ethereum Continues To Confidently Dominate The DeFi Market - Binaryx

“Ahead Of All”: Ethereum Continues To Confidently Dominate The DeFi Market

Ethereum is not going to give up its leadership position in the DeFi ecosystem, as evidenced by the new growth points of the network. What factors are in favor of blockchain, and is there a chance for other platforms to approach Ethereum?

Ethereum accounts for 96% of transactions in DeFi

Ethereum is the unprecedented leader in the DeFi market, according to a recent study by DappRadar. In Q3 2020, Ethereum was able to hit highs on key metrics amid the overall progress of DeFi.

In particular, Ethereum accounts for 96% (about $113 billion) of the total amount of all transactions that take place in the ecosystem of decentralized finance. Also, over the last 4 months, the indicator of user activity has increased: the daily number of active Ethereum wallets is 57%, while the TRON and EOS platforms account for 35% and 5%, respectively.

Today, more than 3,300 decentralized applications (dApps) operate based on Ethereum, ranging from gaming to exchange platforms that operate on the principle of bookmakers.

With Ethereum taking off, other protocols are also trying to gain weight in the DeFi ecosystem. According to DappRadar, the number of daily new users on Ontology apps grew by 1589%, NEO – by 840%, IOST – by 357%. It is a colossal increase over Q2 2020. If we consider these platforms in the transaction volume contest, they demonstrate a systematic growth, but so far they are not far from the top three – Ethereum, TRON and EOS.

What is the driver of Ethereum’s success?

Experts from DappRadar consider the introduction of new governance tokens to be one of the reasons for Ethereum’s soaring performance. Also, a high degree of hype around the ETH blockchain is maintained thanks to pharming (making a profit through DeFi protocols).

Delivery of new tokens and yield farming are the secret to the tremendous success of Ethereum and DeFi in the third quarter of 2020.

Despite the positive sentiment towards Ethereum, DappRadar believes the network is experiencing some difficulties due to increased user activity. Network congestion is regularly observed: at peak times, the average gas price in recent months has exceeded 400 Gwei. According to experts from DappRadar, this could negatively affect network performance and entail the entry into the DeFi arena of other smart contract platforms, alternative to Ethereum.


Ethereum, as before, remains the leader in applications that are created in the cryptocurrency ecosystem, as evidenced not only by transaction statistics but by a stable price for several months. From a trading point of view, a buy price in the region of 360-370 USD with a short-term sale in the region of 400-420 USD may be attractive to you. From an investment point of view, an entry can be made by the market with subsequent retention from 6 to 12 months; for Ether, the near future will be quite promising.

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