• DeFi continues to attract more users with strong products and services across segments such as decentralised exchanges, lending protocols and staking.
• Users across the sector increased by 31% quarter on quarter in 2022, although that pales compared with the 525% spike seen in 2021.
• Decentralised finance, or DeFi, remains big, though not with the same numbers as seen a year ago.
DeFi Growth Despite Crypto Winter
The decentralised finance (DeFi) sector has seen steady growth throughout the crypto winter of 2022 despite a drop in total value locked (TVL) and market prices. Latest estimates suggest that total DeFi users have surpassed 5 million in Q3 of 2022 and will likely exceed 5.5 million by Q4 of 2022.
Record User Growth In 2021
In 2021, user numbers skyrocketed 545% as cryptocurrencies boomed on the back of a staggering bull run. This trend relates to what is known as a ‚blue ocean market‘ wherein new and innovative services capture demand that’s adding to the steady growth in users.
Projects Using Crypto Winter To Build & Improve
Despite a decline in user growth this year amid crypto winter conditions, projects have used this time to build and improve their products which has attracted more users. The sector has also seen an influx of institutional money into DeFi protocols as well as increasing interest from mainstream investors seeking yield-generating opportunities within the space.
Blue Ocean Market Capturing Demand
The DeFi sector is creating its own new market based on innovation rather than eating into traditional finance (TradFi). This blue ocean market captures demand which is contributing towards ongoing user growth within the space despite current crypto winter conditions.