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Decentralized finance (DeFi) refers to financial services that operate using blockchain infrastructure and are not under the control of centralized authorities such as banks or governments.
While DeFi is still relatively small compared to traditional finance, it is expanding rapidly and has already become an indispensable resource for many individuals who lack access to traditional banking services or need to send money overseas with lower fees.
Let's take a look at DeFi statistics, including the total value locked (TVL), user adoption rates and which countries are embracing this new wave of technology.
Quick summary of DeFi statistics
- Lido is the largest DeFi player by TVL with over 4 million ETH locked up on its protocol.
- Largely due to DeFi, Ethereum's market dominance is steadily increasing, sitting at about 20% as of March 2023.
- As of March 2023, the total cryptocurrency market capitalization is just over US$1 trillion.
- Blockchain wallet usage has been increasing year on year, demonstrating an increased interest in and application of blockchain and DeFi.
- As of March 2023, the TVL in DeFi is US$75 billion – down significantly from 2022 all-time highs of over US$220 billion.
- As of March 2023, the total market cap of governance tokens in the
DeFi ecosystem is over US$100 billion.
- As of March 2023, Ethereum-based protocols account for over 90% of the total TVL in DeFi.
Number of active DeFi users
Since 2019, when DeFi was relatively new, its quarter-on-quarter growth has risen at a rapid rate, with over 6 million unique wallets completing an on-chain transaction each month since later 2022.
DeFi user demographics
Based on available data and surveys, DeFi users tend to be younger, well-educated and more technically proficient than the general population. Most users are based in North America, with Europe and Asia representing the next largest user bases. Although the income bracket of DeFi users varies greatly, it is estimated to be above the global average.
Blockchain and DeFi global market capitalization
The market for DeFi is expanding swiftly, with significant growth observed from 2018 to 2020, where it increased nearly 3-fold from US$1.2 billion to US$3 billion. This growth has been consistent, nearly doubling each year. Industry experts project the market to reach US$67.4 billion by 2026.
ETH deposited in Lido
Liquid staking protocol Lido has achieved the top position in ETH TVL and currently holds over US$6.3 billion in smart contracts. The number of investors who have deposited funds into Lido's ETH staking protocol has increased significantly, reaching 4.6 million from 1.6 million in early 2022.
Blockchain wallet users globally
In January 2020, global blockchain wallet users were around 45 million. Within 3 years, this number surged to over 85 million, demonstrating rapid growth in industry and DeFi participation.
TVL across blockchains
DeFi heavily relies on the Ethereum blockchain, which accounts for about 58% of the industry's TVL. BNB Smart Chain (BSC) and Tron hold the following highest TVL percentages, with BSC representing 9.86% and Tron holding 9.68%.
DeFi users by country
Regarding the value of DeFi transactions for individuals as well as retail-sized transactions, India takes the top spot. Around 40% of the total crypto value received in India is represented by ETH. A contributing factor to this trend is the large volume of remittances received in India, which can be sent more conveniently and cost-effectively through cryptocurrency.
Percentage of Bitcoin mined globally
Bitcoin mining worldwide is undergoing a process of increasing diversification. China's dominance of over 75% in September 2019 decreased to 46% by April 2021. The United States accounts for almost 17% of Bitcoin mining and Kazakhstan contributes just over 8%. Other notable countries involved in Bitcoin mining include Russia, Iran, Malaysia, Canada, Germany and Ireland, each of which account for 2–7%.
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