DeFi frenzy and FOMO about it started to fade away.
The decentralized finance (DeFi) sector has managed to attract all interest in the crypto money sector in recent months. The record-breaking rise of the cryptocurrency of many Ethereum-based DeFi protocols has raised the appetite with the curiosity of even investors who have almost no knowledge of this industry.
Aave 3.185%, Kyber Network 898%, Bancor 498%, Loopring 493%, REN 445%, Synthetix 235%, 0x 112% and Augur 101% have increased since the beginning of 2020. The fact that Aave and Kyber Network achieved an increase of 7,000% and 1,000% last year, in fact, signaled that DeFi will be on the agenda in 2020.
While DeFi projects certainly attract a lot more attention than other cryptocurrency projects, experts now emphasize that this is coming to an end.
According to a new report by Consensys, the number of “DeFi” users with at least 100 “DeFi” transactions within 3 months, is in the low 1000s.
This is what crypto twitter is raving about. Why? Because everyone invested in these projects but no one uses them.
— Udi Wertheimer (@udiWertheimer) July 16, 2020
DeFi Usage in Bottoms
According to a report published by ConsenSys, the number of DeFi users with at least 100 DeFi transactions is very low, such as 100 in 3 months. This shows how the crypto money industry is currently involved in the DeFi industry.
Although the entire industry has DeFi investment, almost no one is fully using them. This shows that DeFi directly serves its investment purpose instead of its main purpose.
Vitalik Buterin also stressed that DeFi craze might end soon. Although everyone is sure that DeFi is coming to the end, nobody seems to know what will come next.