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The DeFi boom is pushing a 1200% growth in DApp volume in 2020

According to a DappRadar report, DeFi projects will form the basis of the crypto-economy in 2021.

According to DappRadar, DApp transaction value has reached $270 billion so far in 2020, with 95% of this amount belonging to the DeFi ecosystem of Ethereum. That’s an astonishing 1178 percent rise from the $21 billion total last year.

In its annual DApp Business Survey today, the blockchain data company released the statistics, summarizing the successes and failures of a record-breaking year for DApp-based economics. The study noted that money flowed from BTC to ETH over the year, leading to a spike in ETH’s price from 0.018 BTC on January 1. 2020 to its current price of BTC 0.028.

DappRadar speculates that the “main trigger of Bitcoin flowing to Ethereum” was attractive yields in DeFi, with Wrapped Bitcoin (wBTC) and RenVM’s renBTC playing crucial roles in tapping the vast liquidity reserves of Bitcoin for DApps.

In the 2020 study, which described “year that DApps tried to grow at all costs,” only 10 DeFi DApps accounted for 87 percent of the total volume of Ethereum’s transaction. In November, these 10 DApps totaled for more than a million active users, with DeFi Swap (, Uniswap and Compound as the top three dominating 930,000 of them.

The study noted that this year when the network “effectively hit a wall in regards to scalability” with average gas costs many times higher than last year, Ethereum’s limitations became clear.

The congestion of the network has increased competition growth in the second half of the year with a fast rising share of the overall DApp transaction value from DApp-friendly platforms such as the Binance Smart Chain, Tron and Wax.

It is predicted from DappRadar that 12 significant incidents in 2020 stolen over $120 million. As a result, “insurance will be the next important DeFi ecosystem subcategory,” The category of “NFT Marketplaces” has received much interest, but only moderate growth over the year. The category “Games” has stayed stable and the category “Gambling” has slightly ended.

The Dappradar study concluded that the use of COVID-19 as problem-solving measures has actually improved DApp ecosystems: “It would appear the global pandemic brought increased attention to decentralized solutions as conversations deepened around the distribution of a basic universal income and worldwide database management systems.”

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