Cryptocurrency

Active user wallets on Ethereum DeFi are down 40% in one month

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According to DappRadar, the number of unique active wallets in the Ethereum DeFi market has dropped significantly. Between mid-February and the time of writing, Ethereum DeFi’s unique active wallets are down nearly 40%.

While Ethereum (ETH) gas fees appear to have bottomed out, the high transaction costs that have shaped the network in recent weeks appear to have had a significant impact on DeFi user statistics.

Source: DappRadar.com

For major DeFi protocols like Synthetix and Curve, the number of active users has decreased by 10 to 15% in a 24 hour period. In fact, Cointelegraph previously reported that daily DeFi volumes have decreased significantly due to high gas charges.

However, popular decentralized exchanges like Uniswap and 1inch have seen an influx of new users over the past month. DappRadar data shows that Uniswap’s user base has grown 22% while 1 inch has grown 35% in new users in the last 30 days.

The slump in user adoption for Ethereum-based DeFi also coincided with a heavy influx of users into the Binance Smart Chain. At PancakeSwap, the leading BSC-based DEX, the user base increased by over 200% in the last month.

While Ethereum’s DeFi numbers appear to be falling, the non-fungible token market appears to be immune to the current trend. NFT marketplaces like Opensea and Rarible saw the largest increase in user base last month, with their percentages rivaling those of the popular BSC-based DEX platforms.

While the numbers show that BSC protocols are attracting new users, it’s important to note that the Binance Smart Chain’s decentralized funding is nowhere near as diverse as the Ethereum DeFi arena, with its numerous loans, derivatives, and asset marketplaces.

However, SushiSwap recently went live at BSC. 1 Zoll also announced a planned expansion of the Binance Smart Chain.

Meanwhile, Ethereum proponents are preparing for the EIP 1559 gas fee overhaul planned for July.

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Melinda Martin