- DeFi continues its success in attracting more customers with strong products, services and solutions across segments such decentralised trading platforms, lending protocols and stakes.
- However, the 31% increase in sector users quarter-on-quarter in 2022 was less than the 525% jump in 2021.
- Recent estimates of total DeFi users indicate that the number will rise to 5.5 Million in Q4 2022.
Decentralized finance or DeFi is big. But not in the same numbers as a year ago. As cryptocurrencies surged in popularity, 545% of the user base jumped to 2021.
DeFi statistics for 2022 indicate a decrease in user growth during the long crypto winter. However, the sector still saw a 31% rise in users. This graph shows the quarter on quarter growth in users. latest report HashKey Capital provides DeFi growth.
Users of DeFi have exceeded 5 million
As HashKey Capital analysts highlighted in their recent report, DeFi is not just eating into the traditional finance, or TradFi market, but it’s also curving its own new market. The trend relates to what is a “blue ocean market,” the report noted, with the DeFi sector’s new and innovative services capturing demand that’s adding to the steady growth in users.
A drop in total value locked (TVL) – it is now below $40 billion as per DeFiLlama, still doesn’t tell the whole story of decentralised finance in the past one year.
The total number of user wallets for DeFi segments, including lending, collateralized and debt positions (CDPs), bridges and staking, has surpassed 5 million during the third quarter of 2022. DeFi users will exceed 5.5 millions by the end Q4 2022 with an expected growth of 8%.
Crypto winter is used to improve and build projects
An examination of market prices shows that the majority of assets in the space are now worth less than they were before the crash. The DeFi index has seen a 76% drop in its value, compared to a 65% decline in Ethereum. Despite this, many projects have taken advantage of the crypto winter to grow and improve their products and attract more users.
Venture capitals have continued to invest in this sector. Venture capitals invested more than $14 billion in 725 crypto projects during the first half 2022. Many of these investments were DeFi-focused.
