DeFi Dapps Demand Rises Among Users

We see the launch of new DeFi protocols daily, with new tokenomics and new use cases. After layer 1 blockchains, DeFi protocols are the most talked-about category in the web3 community. DeFi started the 2020-2021 bull run, while most of the blue-chip DeFi tokens have been downtrend since May 2021. DeFi Protocols usage has not slowed down, and users are continuously increasing on these protocols. This article covers the analysis of the DeFi space and its major protocols. DeFi Pulse Index Price Performance Defi Pulse Index (DPI)is a capitalization-weighted index that tracks the performance of decentralized financial assets across the market. The underlying tokens whose performance DeFi Pulse Index tracks are Uniswap, Maker, Aave, Loopring, Synthetic, Yearn, Sushi, Compound, REN, Rari Capital, KNC, Balancer, Badger, Farm. The price action of DPI token can be used as a metric to evaluate the market price performance of DeFi tokens. Currently, DPI token has made a higher high on a daily and weekly level, showing that DeFi tokens have caught investors’ attraction. A significant driver of the DeFi rally is Aave. Since the launch of Aave V3 on March 16, AAVE token price has increased by more than 90 percent. While many DeFi token’s prices rose last week, these tokens are still down more than 60 % from their all-time high price. DeFi Users Over Time Going Up Only At the time of the DeFi summer of 2020, total DeFi users were around 250 ...