2020: The Borderless State of DeFi

Binance Research in tandem with their recently acquired DappReview released a report on the State of DeFi looking back on 2019 and providing insight for the upcoming year. The report finds that there were around 40,000 monthly users of DeFi applications. Earlier in the year that was almost entirely from decentralized exchanges. However, recently non-exchange applications, particularly lending have begun to increase rapidly. In terms of the number of active projects (measured by >50 active users), there were about 20 by the end of the year, up from around 10 at the start.

Dai remains the dominant stablecoin, however, it’s larger competitor USDC has been gaining prominence. While not technically decentralized, USDC is not only larger ($468m vs. $116) but has also held closer to the $1 peg. Compound began offering support for USDC there has been over $30m locked now for the last three months.

Outside of Ethereum, DeFi projects have been created such as EOSDT and Acueos that serve as EOS based counterparties to Dai and Compound, respectively. So far these and others have not gained significant traction but that could change as more cross-chain interoperability solutions go live.

Why it matters

• The growth of DeFi applications was undoubtedly one of the most prominent themes in 2019, however, the meager usage numbers show how far the space has to go.
• Emergent narratives such as declining Maker dominance and Dai competition, both within and outside the Ethereum ecosystem, will be important to watch given their prominence in the DeFi.

Let us know what you loved about the report, what may be missing, or share any other feedback by filling out this short form. All responses are subject to our Privacy Policy and Terms of Service.