The acceptance of Decentralized Finance (DeFi) is growing faster and faster worldwide. A new report from Chainalysis has now shown in which regions DeFi is particularly popular.
Ethereums (ETH) EIP-1559 has now been online for 24 days and to date the upgrade has already exceeded 100,000 ETH (just under 320 million US dollars) burned. In particular, the Non-fungible Token (NFT) Space, but also DeFi, have made a significant contribution to this development. The growth of DeFi on Ethereum therefore ensures that the number of new ethers decreases every day.
Despite this fundamentally positive news for Ethereum, the DeFi sector suffered a slight setback this week. Total Value Locked (TVL) fell by billions of dollars in the past few days. Currently, however, it is still close to its all-time high of just under $ 88 billion.
In addition, the DeFi space by Solana and Avalanche made the headlines this week. Avalanche announced a $ 180 million liquidity mining program and the Pyth Network data oracle launched on Solana. In addition, Circle, the publisher of the stablecoin USDC, which is widely used in DeFi space, announced positive news.
USDC, the safest stablecoin in the world?
Corporate debt is no longer good enough for the stablecoin company Circle. Just before going public, Circle rebalanced reserves announcedthat cover the stablecoin USDC.
With immediate effect, the USDC stablecoin, which is widespread in decentralized finance, is only to be deposited with US dollars and US government bonds with a short term. Previously, USDC was backed by a mix of government and corporate bonds.
With the decision in favor of the financial instruments with the lowest risk in the world, Circle is making an abrupt change of direction. It was only at the beginning of May that the company expanded its pool beyond US dollars to include unsecured corporate bonds and commercial paper (bonds with very short maturities). One im Report published July According to these bonds were responsible for almost 14 percent of the reserves.
The change in direction comes as no surprise, however, as Circle plans to go public this year. In addition, the company plans to become a national commercial bank. In the near future, both steps will therefore result in the FED and other regulators scrutinizing the USDC much more closely.
DeFi Adoption Index
Chainalysis released a report on the global adoption of Decentralized Finance this week. In this report, Chainalysis ranks different countries specifically for DeFi adoption, focusing on basic adoption by individuals. The data from the analysis company showed that the acceptance of DeFi is most pronounced in high-income countries. Adoption is particularly high among institutional investors and professional traders.
Chainalysis’ table shows that countries that have seen increased trading volumes in the past lead the DeFi adoption index. In addition, the report by the crypto analysis company shows that monthly website views are also in these countries significantly higher are than in other countries.
Chainalysis comes to that Enoughthat this development is due to the fact that DeFi is primarily run by seasoned crypto investors and institutional investors looking for new opportunities for returns.