DeFi Round-Up for October

The DeFi market continued to push new all-time highs for the month of October as news surrounding the launch of the first Bitcoin Futures ETF came to fruition and paved the way for broader adoption. Moving along the adoption spectrum, Houston Firefighters Pension Fund announced their investments in Bitcoin and Ether while PIMCO, a $2 trillion investment firm announced they are starting to pay attention to DeFi and its value proposition.

As adoption continues, the number of DeFi wallets continues to grow and has reached new all-time highs with 3.7 million unique addresses this month. Although users may have multiple wallets/addresses, this datapoint still serves as a worthy pulse on the overall health of the DeFi ecosystem.

(Source: Dune Analytics)

These wallets interact with various products across different DeFi protocols to predominately borrow, lend and exchange cryptocurrencies. Therefore, it’s not surprising to see the total value locked in DeFi also growing and demonstrating real value for DeFi users. The total value locked reached new all-time highs of $107 billion in October.

(Source: The Block)

Monthly revenue generated by popular DeFi protocols has steadily increased year-to-date and averaged $248 million a month for its users and token holders while cumulative revenue has grown to be over $2.8 billion.

(Source: The Block)
(Source: The Block)

The total value staked in the ETH 2.0 contract has been steadily increasing as well and continues to provide yield bearing opportunities in DeFi. Meanwhile, over $8 million has been staked, representing 6.8% of the circulating supply.

(Source: The Block)

Deposits and loans have dropped lately from Aave’s money market protocol over concerns about its safety following Cream Finance’s recent exploit. Aave confirmed that xSUSHI (staked governance tokens) as collateral in Aave may be subject to a similar price manipulation exploit. As a result, the total value of loans and deposits across the 3 largest protocols have dropped. The total value of deposits at the end of October was $40.6 billion and the total value of borrowing was $20.3 billion.

(Source: Dune Analytics)
(Source: Dune Analytics)

The performance of the DeFi Pulse Index (DPI) which is a capitalization-weighted index that tracks the performance of DeFi, performed 199% year-to-date and 14% month-to-date. Meanwhile, ETH performed 474% year-to-date and 51% month-to-date, outperforming both Bitcoin and the index.

(Source: CoinGecko)

The growth in DeFi wallets, total value locked, and cumulative revenue are just some of the activities we monitor and analyze here at Digital Bankr as capital continues to flow within the Ethereum ecosystem. Increasing activity and interest in the DeFi market is a testament that millions of people are using Ethereum blockchain to build and participate in a new economic system that is powered by code — one that sets new standards for financial access, opportunity, and trust.

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James Chung

Founder and Contributor @DigitalBankr. I write exclusive research, analysis and market news on all things blockchain, including crypto-assets.