NEW YORK–The total number of users of decentralized finance (DeFI) rose by 35% to 6.7 million in January over one year earlier, according to new data.
“Although the 2022 crypto winter has been especially cold in decentralized finance (DeFi) land, DeFi’s relevance within crypto has remained stable,” said Bitcoin Casinos, which released the numbers. “Despite rough market conditions, the DeFi industry has quietly kept building and innovating, and gaining new users.”
Bitcoin Casinos defined decentralized finance as any product or service offered by the Web3 world that helps users perform financial activities such as payments, investing, lending, borrowing, trading, and staking.
“However, unlike traditional financial services, DeFi eliminates the fees banks and other financial companies charge for using their services, allowing users to hold money in a secure digital wallet and transfer funds in minutes,” the company said.
Analysis of Unique Addresses
Bitcoin Casinos cited Dune Analytics data, which analyzed the number of unique addresses involved in buying or selling specific projects associated with DeFi, that showed there were less than 110,000 DeFi users just three years ago. Over the next 12 months, this figure surged by 1,100% and hit over 1.3 million worldwide, Bitcoin Casinos said.
“Statistics show between 2021 and 2022, the number of users grew by another 281% and hit 4.96 million in January 2022,” the company said. “The number has continued rising, with more than 1.8 million new users joining the DeFi space since then.
In addition, statistics show the number of unique DeFi users has increased by 420% over two years, rising from 1.3 million to 6.77 million as of mid-January, the company added.
Total DeFi Market Cap Sinks
While the number of DeFi users significantly increased in the last year, the total DeFi market cap, measured by the amount of cryptocurrency locked, is still deep below levels seen in 2021 and the first months of 2022, the report added.
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