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Ethereum DeFi Ecosystem Hits 2 Million Users

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This past week, crypto-fanatics made history yet again, as the userbase of the Ethereum decentralized finance (DeFi) ecosystem hit 2 million unique users.

The Ethereum DeFi Ecosystem

With 2021 continuing its bullish trend, the Ethereum DeFi ecosystem reached 2 million users for the first time, a new all-time-high (ATH) coinciding with new Ether ATHs as well.

The number of unique Ethereum (ETH) addresses that have interacted with Ethereum-based protocols has seen a sharp over the past couple of months, as volume has continued to ramp up heavily.

Decentralized Exchanges Compelling DeFi Growth

Leading the charge and compelling DeFi growth have been top decentralized exchanges (DEXs) like 1inch Exchange and Uniswap, to name a few.

To the forefront, however, a clear winner has emerged in the battle for top DeFi DEXs – the #1 decentralized exchange in DeFi, otherwise known as the Uniswap (UNI) protocol, has continued its monstrous rise.

As the largest DEX with over $2M in gas fees paid to liquidity providers (LPs) and miners on transactions in the last 30 days alone, this is further indicative of the massive volume, and thus growth that the DeFi and cryptocurrency space has experienced this year as a whole.

Ethereum 2.0 and the Future of the DeFi Ecosystem

ETH 2.0 is currently in the final testing phase and will allegedly integrate far cheaper smart-contract interactions and ERC-20 token transfers.

By switching from a proof-of-work (PoW) to a proof-of-stake (PoS) validation model, ETH 2.0 will supposedly feature far cheaper smart-contract interactions and ERC-20 token transfers.

The EIP-1559 Upgrade Proposal

The EIP-1559 proposal upgrade scheduled for July could not happen soon enough for many, as unfortunately, users have been yet again plagued by all-too-familiar skyrocketing gas fees, as Ether paints new-all-highs at the time of writing.

The proposal EIP-1559 proposal will make ETH a deflationary asset by burning gas fees from every transaction on the ETH network instead of paying them to miners.

Hence the need for Ethereum to switch from a proof-of-work (PoW) to a proof-of-stake (PoS) validation model, as mentioned earlier, with the inevitable and impending unveiling of ETH 2.0.

Conclusion

There seems to be no slowing to the demand for Ether, not only as a currency but as a settlement layer and transaction medium for decentralized financial protocols.

With the Ethereum EIP-1559 upgrade scheduled for July, it does not appear as though the current bullish trend will be slowing down anytime soon, either.

However, how this ultimately plays out is yet to be seen.

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