$530 Million Decentralized Finance (DeFi) Blockchain Ecosystem Mainly Built with Ethereum


  • The Decentralized Finance (DeFi) ecosystem is expanding rapidly.
  • MakerDAO, Uniswap, and the Dharma Protocol are some of the leading applications that have been launched on Ethereum (ETH) to help facilitate peer-to-peer lending (among other use cases).

A Binance report has confrimed that a major proportion of Decentralized Finance (DeFi) apps are made on Ethereum blockchain. In fact, DeFi has turned out to become one of the main applications of Ethereum.

Number of DApps per blockchain, courtesy of Binance Research

At the center of DeFi’s beliefs is the provision of a permissionless financial service ecosystem without any central authority, available to everyone in the world. In this ecosystem, the user acts as his own custodian, maintaining full control over his assets, encouraging full ownership and access to all disintermediated marketplaces and platforms.

The blog defines DeFi to be:

“An ecosystem comprised of applications built on decentralized networks, permissionless blockchains, and peer-to-peer protocols for the facilitation of lending/borrowing or trading with financial instruments.”

As seen in the above graph, Ethereum dominates in the number of existing applications, transaction count, and volume traded/locked on existing platforms. Collateral locked on Ethereum-based DeFi applications are collectively worth over $500 million.

Maker and Dai Make Up Largest Part of Evolving DeFi Ecosystem

Native blockchains assets are defined as assets whose value is not backed by any non-native blockchain asset such as a commodity, equity or fiat currency. They pretty much make up the vast majority of Ethereum based DeFi platform.

One of the core pillars is MakerDao (MKR) and its Dai (DAI) stablecoin. Dai’s value is pegged to the USD dollar through a complex collateralization mechanism and a stability fee that incentivizes market participants to arbitrage any long-lasting mispricing issues.

EOS’s EOSRex enables users to borrow and lend EOSIO resources. Despite it being released a month ago, this single application has become the largest platform based on the total collateral value, with more than 90 million EOS being locked.

This has resulted in EOS leading with most amount locked by blockchain. Bitcoin’s Lightning Network solution can be considered as a DeFi application running on the Bitcoin blockchain.

Other blockchains are also joining in to be a part of Open Financial initiative. For example, Stellar aims at developing the world’s new financial system, but has yet to see increasing financial-related dApps created by third-party developers.

Ethereum’s price is $3,907.27 ETH/USD exchange rate today. The real-time ETH market cap of $452.49 Billion currently ranks #2 with , daily trading volume of $22.59 Billion and live coin value change of ETH 0.79 in the last 24 hours.

Live Ethereum (ETH) Price:

1 ETH/USD =$3,907.2698 change ~ 0.79%

Coin Market Cap

$452.49 Billion

24 Hour Volume

$22.59 Billion

24 Hour VWAP

$3.89 K

24 Hour Change

$30.94

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