DappRadar, the information provider for all existing dapps, published a report yesterday about the volume for Ethereum applications. The report showed that Ethereum based applications exceeded $12 billion in July 2020. The DeFi metrics site wrote that:

“2020 continues to be dedicated to the Ethereum DeFi ecosystem,”

The report also showed that Ethereum transaction volume achieved its all-time high in July. From that, DeFi (Decentralized Finance) accounted for at least 92% of total transactions. Decentralized Finance (DeFi) refers to financial applications such as decentralized exchanges, stablecoins, synthetic stocks, and lending protocols which, will come under the bucket of non-custodial finance applications. 

“The biggest contributors to the category were CompoundAave, and Curve in July 2020. They generated 48%, 14%, and 14% of transaction volumes respectively,”

The token price of Ethereum also increased significantly, touching $340 in July, recording the highest for 2020 until July. According to the metrics site CoinGecko, the DeFi market cap is closing in on $9 billion, setting a new record. 

“DeFi “yield farming” is the latest meme exciting investors in the crypto universe.”

Camryn Rabideau : Forbes Personal Shopper – Contributor Group

DeFi and Yield Farming

The act of leveraging DeFi protocols and products, to generate high rates of return is defined as Yield farming. Some of these protocols even started issuing governance tokens, giving users a chance of voting on the future of the networks.  

Token sites like Compound started in late June, issuing their famous COMP token. This started a new chapter in the DeFi ecosystem. Other protocols like Balancer’s BAL, Yearn Finance’s YFI, mStabe’s MTA, Uma Project’s UMA followed the trend. 

According to CoinmarketCap (cryptocurrency market information provider), the COMP token when it launched on June 17th started trading at $64.50 with a daily trading volume of $155,475. However, by June 21 the token was worth $327 and volume peaked at $304 million by the 6th of July. 

The DeFi has a bright future, especially it can contribute to the betterment of mankind. Decentralized finance has to look at better user experience design and also gain the trust of the general public. We will gradually see that those protocols will be an integral part of the Internet. As the most common token most protocols use, ETH (Ethereum) achieved $411 on Sunday set a new high for this year.