Ethereum Adoption by the Numbers

Average of the past 21 days.

1) 30.5K New Contracts Are Created Daily 

Data visualization created by Connor Higgins

Any developer can deploy a new smart contract on Ethereum, which is the basis for creating new decentralized applications (DApps). DApps have the same general properties as a traditional app, except that their data is recorded on the blockchain through the use of one or more smart contracts. As such, a decentralized application is often described as trustless or peer-to-peer because no single server or entity is controlling it. 

2) Over 1M ETH Is Sent Daily to DEXes vs 200K to CEXes

Data visualization created by Connor Higgins

Deposits made on decentralized exchanges surpassed the amounts made on centralized exchanges for good on June 8th of this year. The launch of Sushi attracted over $1B in 4 days, followed by the launch of $UNI, which also attracted millions of dollars. 

It’s clear that at this time, users prefer decentralized platforms that require no KYC, than centralized platforms. The current trend suggests that DeFi will one day take over CEXs, in large part because DEX products are easier to use, in the sense that they require less bureaucracy. 

The fact that in March both centralized and decentralized exchanges saw an uptick in volume deposited suggests that the hype around new DeFi products was the catalyst for new fiat to enter crypto (deposits on CEXes) and resulted in an increase in DEX volume. 

There is an interesting correlation also between newly created contracts in the previous graph, and DEX deposits just above. In March, the uptick of the two is nearly identical. The fact that there is nearly no lag between the two suggests that users are very up to date with the latest DeFi protocols and are quick to start using them. 

It could also point to bitcoin whales (i.e. users who own over 1,000 BTC) jumping on the latest projects to soak up as much APY before they dump and move on. The whales are big players who have an incentive to stay up to date with the latest trends. 

3) 25K BTC Is Wrapped Daily 

Data visualization created by Connor Higgins

Users can wrap their Bitcoin as a way to use them on the Ethereum platform — most likely as a way to take part in DeFi. Normally, a blockchain’s native cryptocurrency cannot be used on another blockchain because each blockchain uses different and incompatible designs when creating their infrastructure. So in order to use Bitcoin on Ethereum, ERC-20 tokens pegged to BTC were created. Several of these exist, but Wrapped Bitcoin (wBTC) is the most active one by far (learn more in this post). 

4) 15% of Active Ethereum Addresses Are Interacting With DeFi 

Data visualization created by Connor Higgins

Shown above is the trend in the daily number of unique Ethereum addresses involved in DeFi. The data shows that 15% of active Ethereum addresses are now interacting with DeFi protocols. That number was under 10% in August and around 5% in January. The trend appears to be leveling off following the launch of Sushi and Uni, which correlates with the other charts. 

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