DeFi user activity weakened sharply amid falling market

by in DeFi News

DeFi

Daily transactions in the DeFi market have dropped to their lowest levels since 2020. For example, the number of transactions on the UniSwap platform decreased by 28% compared to mid-May.

The Glassnode report says that the volume of transactions in dollar terms decreased by 60% in two weeks. Moreover, transactional activity has weakened in almost all projects deployed in the decentralized finance ecosystem.

Compared to the previous month, Compound (COMP), Aave (AAVE), UniSwap (UNI), and Yearn Finance (YFI) protocols showed negative dynamics.

According to DeFiPulse.com, the value of blocked funds in the Ethereum-based decentralized finance market is now $ 60.84 billion. The top three DeFi projects include Aave, Maker, and Compound, which have accumulated assets of $ 12.9 billion, $ 8.39 billion, and $ 7.61 billion respectively.

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The researchers concluded that the fall in the value of Ether (ETH) and DeFi tokens was a key factor behind the weakening of transaction activity.

In parallel, there is a drop in commissions in the Ethereum network. Now the average collection is about $ 5.8, although in mid-May it reached $ 69.9.

Glassnode analysts stressed: "Simply put, lower transaction demand is correlated with lower prices."