Ethereum continues to dominate the decentralized finance (DeFi) space as usage on its network significantly outperforms other smart contract platforms including TRON (TRX), EOS, IOST, Ontology (ONT), and NEO.
According to the Q3 decentralized finance ecosystem report by DappRadar, a platform that tracks and analyzes decentralized apps, Q3 is the best quarter for DeFi thus far with Ethereum accounting for 96% of the $123 billion total transaction volume in the nascent ecosystem.
The second-largest cryptocurrency by market cap is also the clear leader in terms of daily active wallets in DeFi. Ethereum is responsible for 57% of DeFi daily active wallets with TRON and EOS accounting for 35% and 5%, respectively.
Smaller smart contract platforms are playing catchup when it comes to user activity. DappRadar reports that the daily active wallets of Ontology have soared by 1,589% with NEO witnessing growth of 840% between 2019 to 2020. IOST also experienced an increase in the metric after surging 357% over the same stretch.
DappRadar also highlights the power of yield farming as a major contributor to Ethereum’s dominance in the DeFi space.
“It is evidential, that the delivery of new governance tokens together with yield farming created the hype that ended up generating remarkable results in Q3, effectively assisting Ethereum in maintaining its leadership position throughout Q3 2020.”
While Ethereum has become the de-facto platform of choice for DeFi protocols, DappRadar says the network is facing a huge concern. DappRadar notes that the platform is facing serious signs of congestion as more DeFi protocols enter the network.
“Although the results of Ethereum are astonishing, one of the main issues slowing it down is congestion. The gas prices showed impressive heights during Q3 2020.”
DappRadar says the network congestion on Ethereum may open the door for other platforms to become viable alternatives
You can read the entire report here.
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