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The most popular DeFi dapps right now

Posted by
Modesta Jurgeleviciene

September 2020 DeFi Flash Report

2020 has proven to be all about the DeFi ecosystem. We have already witnessed a few important waves of activity. 

The Black Thursday events in Mid-March and the introduction of yield farming are still heating up the ecosystem. While the hype around DeFi is still obvious, it is compelling to have a look at top contributors to the ecosystem right now.

Within this overview we will have a look at the most popular DeFi dapps right now based on active wallets, total value locked and the price of the native tokens. MakerDAO, Aave, and Curve.

Key Takeaways

  • MakerDAO regains a leadership position in total value locked by surpassing $1.5 billion. 
  • MakerDAO is responsible for 21% of the total value generated in the DeFi space right now.
  • Aave is right behind MakerDAO with $1.35 billion in TVL with active wallets growing by 25% in September. 
  • Aave is the number one lending protocol in DeFi right now.
  • Aave’s LEND token value has increased by 952% in three months.
  • While daily wallets on Curve skyrocketed recently from 102 to 1,235 within 3 months, the dapp lost its share in value. TVL is close to $1 billion now.

DeFi is still the most important category on Ethereum

As already reported, the DeFi category generated $24 billion of transaction volume in August 2020. The total value locked surpassed the $7 billion line and active users are higher than 19,000.

Recently the top three dapps leaderboard was fluctuating a lot. Aave and Curve just surpassed $1 billion in total value locked back in August while MakerDAO held more than $1 billion in value for a while now.

MakerDAO regains first place: TVL surpassed $1.5  million

Considering the development of MakerDAO’s total value locked over the past 3 months. We notice a steady increase since August 2020.

MakerDAO is responsible for 21% of the total value generated in the DeFi space right now according to DappRadar. It stands number one in the DeFi category with a total value locked of $1.5Bn. 

The token accounting for the major percentage of total value locked is Ethereum. It has increased its value locked by 90% in August compared to July. Driven in part by the increasing token value of Ethereum within that same time frame.

In the first 15 days of September Ethereum value locked in MakerDAO accounts for 96% of the total Ethereum locked in all of July. This makes Ethereum the biggest contributor to the total value locked and still the most used collateral type in MakerDAO.

MakerDAO active wallets grew by 37% 

In the last 3 months, the number of active wallets interacting with MakerDAO has been fluctuating between 300 to 500 on a daily basis and at times reached peaks of 1,000. 

Although it’s too early to comment on the active wallet data observed in September if we quickly observe. Activity to date has grown by 37% when compared to August which was 44% lower than July. 

MKR token decreased in value

MKR is the ERC20 token of MakerDAO it’s also a Governance token and its primary purpose is to support the stability of the MakerDAO DAI token. 

In the last 3 months, the MKR experienced a fluctuation in price, and today the token price is around $500.

Aave is the number one lending protocol in DeFi right now

Although the first place goes to MakerDAO, Aave had a fascinating month in regard to all metrics. In August, Aave surpassed the $1 billion in total value locked and hold $1.35 billion in total value locked right now.

Aave is responsible for 20% of the total value locked according to DappRadar data right now. Of course, the position was well earned and driven by a few key initiatives.

Aave recently lowered the barriers to entry and introduced a new service that allows users to take out loans without the need to deposit collateral.  Furthermore, Aave also announced that the protocol will bring tokenized mortgages on Ethereum.

Last but not least, the Aave token (LEND) also received UK Financial Conduct Authority approval that spiked LEND prices to an all-time high.

Aave active wallets increased by 25%

Within the first half of September, Aave’s number of active wallets has increased by 25%. Of course, this was triggered by the hype around Aave’s new services and approvals. 

It is remarkable to see that Aave’s number of active wallets increased almost three times within three months. The wallet number grew from around 300 to more than 800 right now.

LEND token value increased 952% in three months

While the price of the LEND token had been continuously increasing from June, the biggest spike was triggered right after the announcement that LEND was to be approved by the UK FCA.

Back in June, the token was worth around $0.06 now it is $0.67. The trend seems to be quite strong and expected to grow further in 2020.

Curve’s total value locked exceeds $950 million

Curve is a decentralized exchange that employs an Automated Market-Maker (AMM), which is optimized for stablecoins. Curve’s native token is CRV which was officially declared as a governance token in August 2020.

As per DappRadar’s DeFi page, Curve currently holds 13% of the total value locked in the DeFi space and is the third-largest DeFi dapp in the industry with the $983.67 million TVL

Stablecoins have been a critical element in the growth of Curve and have had an enormous impact on the observed TVL.

Curve active wallets grew from 102 to 1,235 within 3 months

In the last 3 months, activity in Curve has increased from 102 to 1,235 active wallets. Which is remarkable in itself. 

During mid-August, the protocol experienced its peak in activity and crossed more than 4,300 active wallets. Driven mainly by the announcement of its CRV token as a governance token. 

Recently Curve’s user activity decreased by 18% compared to August. However, it’s too soon to state any conclusions with half of September still remaining. Let’s wait and see how the activity plays out. 

CRV token value decreased by 84%

The CRV token as a governance token came into force on the 14th of August 2020. Since that time the value has decreased by 84%. 

The downturn might suggest that the token has not yet been adopted within the ecosystem. While the positive side is that the token price has been quite stable for the last ten days and is hovering around $2.

Conclusions

To conclude, DeFi is still heating up while the most innovative protocols and service providers seem to be winning the race.

Aave has shown a stellar performance in all metrics and seems to be starting to dictate trends in the lending category. The token also faced an all-time high recently due to the approval of the UK FCA.

MakerDAO has recovered its leadership in terms of TVL while other metrics don’t seem to be growing as quickly as value.

Curve faced contradictory results. While TVL spiked recently and reached $1 billion, the token value has decreased by 84% within a few months of existence.

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