The number of DApp users across the Ethereum blockchain has doubled in the second quarter of 2020 as yield farming craze continues.
This is also the first time that more than two billion dollars have been locked inDeFi protocols. Most top DeFi tokens such as COMP, MakerDAO, and Synthetix contribute to yield farming through one way or another.
DeFi hits $2 billion
Before June, DeFi had declined below one billion dollars but regained the level on June 5 with MakerDAO leading the bulls. Since then, the sector has witnessed an astonishing growth rate to lock another billion dollars in little more than a month.
The primary reason behind this growth has been yield farming, the newest trend for Ethereum users. Yield farming allows users to earn an APR of up to 100 percent through USD lending.
Is COMP driving DeFi on Ethereum?
MakerDAO used to be the leading DeFi platform for more than a year. That is until Compound launched its COMP token that took the position. COMP was listed on June 16 and saw a 60 percent rally in a few hours, making it the largest DeFi token by market capitalization.
The number of daily DeFi users soared from 7,682 to 11,230 immediately after COMP’s release marking a 48 percent growth. Since then, the asset has been closely linked to DeFi.
COMP’s price set an all-time high of $372 on June 21 when the daily transaction volume of DeFi peaked above $608 million.
However, while the asset had a great start, DApp.com reported that Brave’s Basic Attention Token (BAT) was the most used token in DeFi with a transaction volume of $931 million.