The transaction volume of Ethereum DeFi projects showed explosive growth last year, with an increase of nearly 8,000%, which caused a huge sensation in the cryptocurrency field. DeFi (decentralized finance), as an important application field of blockchain technology, is growing at an unprecedented rate. This article will explore the reasons behind this phenomenon from multiple angles and reveal the charm of DeFi.

The rise of DeFi projects stems from the strong foundation of Ethereum, a smart contract platform. As a second-generation blockchain, Ethereum provides solid technical support for DeFi projects. The introduction of smart contracts allows financial transactions to be carried out without trusting third parties, greatly improving the transparency and security of transactions. This technological innovation has laid the foundation for the rapid expansion of the DeFi market.

Among DeFi projects, lending protocols are one of the most popular and active applications. Users can use their crypto assets as collateral to lend digital assets such as stablecoins to realize asset appreciation. As a pioneer in the DeFi lending market, MakerDAO provides more liquidity and options for the cryptocurrency market through the issuance of its stablecoin DAI. As users' recognition of DeFi lending protocols continues to increase, trading volume will naturally rise.

In addition to lending protocols, DEX (decentralized exchanges) in Ethereum DeFi projects also performed well last year. The rise of DEXs such as Uniswap and SushiSwap has provided a more convenient and low-cost option for cryptocurrency trading. Users can freely trade various tokens on these platforms to achieve rapid asset mobility. This open and decentralized trading method has attracted more and more users and promoted the rapid growth of DeFi project trading volume.

In addition, liquidity mining is also one of the important factors driving the growth of DeFi project trading volume. By providing liquidity to participate in various DeFi projects, users can get corresponding rewards, which has attracted a large amount of funds to flow into the DeFi market. The launch of projects such as Yearn.Finance has further exacerbated the popularity of the DeFi market. Users can get rich returns by participating in liquidity mining. This incentive mechanism has effectively promoted the development of DeFi projects.

With the vigorous development of DeFi projects, regulatory risks have gradually become prominent. The decentralized nature of DeFi projects makes supervision more difficult, and there are compliance risks and security risks. Recently, security vulnerabilities and hacker attacks in some DeFi projects have caused market concerns, and regulatory authorities have also begun to increase their supervision of the DeFi market. How to effectively avoid risks while ensuring innovation has become an urgent problem for DeFi projects.

In general, the phenomenon of Ethereum DeFi project transaction volume skyrocketing by 8,000% is driven by both technological innovation and market demand. The rapid development of DeFi projects has provided new possibilities for the application of blockchain technology and provided users with more choices and opportunities. However, issues such as supervision and security still need to be taken seriously. Only on the basis of establishing sound systems and norms can the DeFi market continue to develop steadily. Let us wait and see and witness the exciting development of DeFi projects in the future!

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Despite the chaos in the crypto market over the past few months, 2019 has been a great year for DApps, especially for the emerging DeFi sector. A new report released by the analysis website DappReview shows that the number of DApp transactions that occurred in the first quarter of 2020 increased 10 times compared to the same period in 2019.

In the first quarter of 2020, the transaction volume on a dozen blockchains was close to $8 billion, an increase of more than 82%. In addition, the EOS, Tron and Ethereum networks accounted for 99% of all DApp transactions.

Ethereum-based DeFi projects performed well. The report said that the transaction volume of these DApps increased by nearly 800% compared to last year. Most of these DeFi projects use ERC-20 tokens instead of ETH.

Overall, the transaction volume of Ethereum-based DApps exceeded $5.6 billion, an increase of more than 650%. More than 80% of this was obtained through ERC-20 tokens, especially in exchanges and financial applications. According to DappReview, the transaction volumes of these two DApps were $2.34 billion and $2.95 billion, respectively.

The report states that the Tron blockchain network has considerable influence in the DApp ecosystem, which cannot be ignored. But the transaction volume on the entire network has declined. Between Q1 2019 and Q1 2020, the transaction volume on the Tron network fell by about 73%, from $1.57 billion to $411 million.

The same is true for EOS. According to the report, EOS DApps saw a 11% drop in transaction volume between Q1 2019 and Q1 2020.

However, the transaction volume of the EOS blockchain's exchange DApps surged, soaring by more than 226%, becoming one of the largest DApp activity areas on EOS.

DappReview also pointed out that most of the transaction volume fell in March due to the overall market decline caused by the panic related to the coronavirus pandemic. For example, the transaction volume of gambling DApps fell by more than 64% between Q1 2019 and Q1 2020.

In addition, more than 250 DApps were launched in Q1 2020, a 60% drop compared to Q1 last year, while the crypto addresses associated with DApps fell by 22%.