The decentralized finance (DeFi) ecosystem is witnessing robust growth despite recent challenges, as overall cryptocurrency usage reaches record highs, according to a new report.
In the latest “State of Crypto” analysis, it is highlighted that the crypto industry has experienced a significant surge in activity over the past year, mirroring the early stages of internet adoption.
For example, September 2024 recorded 220 million addresses engaging with protocols in the blockchain ecosystem—this figure represents more than a threefold increase compared to late 2023. Approximately 100 million of these active addresses were associated with Solana, a blockchain network that has seen substantial activity growth.
Other networks experiencing significant increases in active addresses include Near Protocol, a layer-2 network, and Bitcoin.
Stablecoin and Crypto Regulation
The report emphasizes various growth metrics and critical issues affecting the crypto industry since the previous report. One key point is that cryptocurrency has emerged as a significant political topic amid the U.S. elections, with the United States currently trailing behind the European Union and the United Kingdom in public engagement regarding crypto regulation.
Moreover, the stablecoin market has seen vital developments, with these digital assets becoming one of the top holders of U.S. Treasury securities. Notably, major stablecoins like Tether and USDC have demonstrated significant growth in the third quarter of 2024.
Infrastructure upgrades and the growing intersection of blockchain technology with artificial intelligence are further propelling the industry’s expansion.
DeFi Continues to Expand
DeFi remains a leading sector in terms of user activity, recording substantial engagement over the past year.
“Since DeFi’s emergence in the summer of 2020, decentralized exchanges (DEXs) have grown to constitute 10% of spot crypto trading activity — transitioning from a landscape dominated by centralized exchanges just four years ago,” the report states.
The total value locked in DeFi protocols across the ecosystem has surpassed $169 billion. Leading platforms in this space include Lido, Aave, Uniswap, and EigenLayer, which continue to attract users amidst ongoing challenges faced by traditional financial institutions.
The report also reveals that the most active blockchains in terms of builder interest are Ethereum, Solana, and Bitcoin. While Ethereum remains the top choice for developers, with 20.8% of builders, Solana’s developer activity has significantly increased from 5.1% in 2023 to 11.2% in 2024.
Additionally, Base recorded a notable rise in developer engagement, climbing from 7.8% to 10.7% year-over-year, while Bitcoin has seen an increase in DeFi-related interest, growing from 2.6% to 4.2%.
