Active wallets up 30% after last week’s hack
In the past seven days the transaction volume of Yearn Finance has increased 72% week-over-week to more than $111 million. In addition the leading DeFi platform has seen its unique active wallets (UAW) go up 30% to 1093 on February 11th.
It looks like Yearn Finance has shown why its strong position in the DeFi sector is justified. After a hack and the way it dealt with the aftermath, the yield farming aggregator had 1093 active users on Thursday. This is not a record, but sure highlights user confidence. This increase in active users at Yearn Finance also resulted in the earlier mentioned 72% increase in transaction volume.
Last week Yearn lost $11 million through a hack. This incident seemed to hurt Yearn’s reputation, but it turned out to be nothing more than a bump in the road. The developers quickly addressed the issue, and have used their treasury to repay the victims.
At the same time investment fund Greyscale is looking at the native YFI token for a potential investment. This has pushed the value of YFI up 27% in the past 24 hours.
What is Yearn Finance?
Yearn Finance is an aggregator service for DeFi investors, allowing users to maximize their yield farming profits. The DeFi project launched in July 2020 with a token price of $32.
As a service, Yearn Finance tries to make DeFi accessible for everybody. Even though currently gas fees are working against them.
A shift happening in DeFi
Since its break-through in the Summer of 2020, Decentralized Finance (DeFi) has been home to the Ethereum blockchain. However, increased popularity of DeFi services have caused an overload of transactions on the network. As a results gas fees are spiking. This makes transacting smaller amounts of money impossible, as the gas fees often outweigh the actual value being transferred.
That’s why we are now seeing DeFi becoming successful on other blockchains as well. Especially Binance Smart Chain stands out. With almost 15 thousand users in the past 30 days Venus is a clear leader on Binance Smart Chain, doing $53 billion in trading volume.
In terms of volume Venus is bigger than established products like Ethereum, Compound and SushiSwap. However, Uniswap still has a lot more unique active wallets.