The second quarter of 2021 was the biggest one yet for decentralized finance (DeFi) protocols on the Ethereum network.
From April through June, the number of Ethereum addresses increased 10%, according to the ConsenSys Q2 2021 DeFi Report released today, while the number of addresses that used a DeFi protocol expanded by 65%.
DeFi is the catchall term for blockchain-based protocols that remove banks and other intermediaries from financial transactions. With DeFi, sellers can swap tokens directly with buyers, holders can earn crypto for depositing funds, traders can take out loans, and speculators can make bets on price movements.
While DeFi applications are available on a handful of networks, including Binance Smart Chain and Solana, they started on Ethereum, where the lion’s share of use remains. There are nearly $70 billion in assets tied up in DeFi protocols, per DeFi Pulse.
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