25+ DeFi Statistics (2022) and Crypto Trends to Watch

While you are sitting at your desk at work or maybe just reading a newspaper, a lot is going on in the world of DeFi.

Oh, a DeFi statistic just made the following headline you are about to read.

I’m sure you’ll want more, so I have prepared a list of several DeFi statistics to keep you up to date with unfolding events in the DeFi universe.

These statistics have been gathered from the last few years (2017 till date) to be precise.

Before you delve into the statistics correctly, you might want to know something about DeFi. 

So let’s start with that.

What is DeFi?

DeFi is a vast field of finance, and we cannot possibly cover everything about it in this post.

So I’ll present the key ideas to stay brief and straightforward.

To begin with, DeFi codes for Decentralized Finance.

If you have read or even heard of CeFi (centralized finance), you’ll realize that DeFi is the opposite.

Going deeper, DeFi is trading financial instruments without intermediaries such as banks, brokerages, and exchanges.

Unlike centralized finance, which relies on human-controlled transacting systems, DeFi allows direct person-to-person transactions.

The transactions are recorded and verified by software in a financial database. Once the users have agreed on the transactions, the trades are closed and encrypted as part of a series of blocks known as the blockchain.

As a result, there are no lengthy protocols to follow. Transactions are much quicker, and anyone anywhere can trade financial services as long as they have a wallet, some coins, and an internet connection.

The security associated with DeFi is also more robust. First, each block (closed transaction) in the blockchain is encrypted. On top of that, the interconnection between blocks in the blockchain means that information in one block cannot be changed without affecting the rest blocks since they build on each other.

Another bonus is the high level of transparency. Every detail of the transactions in the peer-to-peer network is open to all involved. That’s something scarce with corporate financial institutions.

Many people confuse DeFi with cryptocurrency. If that’s true of you, don’t worry. I’ll clear up the difference right away.

One way of looking at it is this; business includes the currencies various countries use. But the coins are not business itself, just a part of it. 

In the same way, DeFi as a form of trade also involves currencies, but this time in the digital form known as cryptocurrencies.

Cryptocurrencies are simply the medium of exchange in DeFi, just as physical currency is the medium of business in the conventional way of doing business.

So, DeFi is vast, and cryptocurrency is just a part of it; it’s just an application of DeFi rather than the whole thing.

DeFi is rapidly evolving, and there is a lot to say about its growth in recent years. 

That’s the next thing to talk about—DeFi growth stats.

DeFi Growth Stats

The Value of Investments in Decentralized Finance has increased 10x Since 2019

10x is a staggering increase in DeFi investment 

The records show that $9.3 billion worth of value was locked in decentralized finance in 2019 alone.

That figure almost tripled to $25.2 billion by December 2020.

And it more than tripled to $92.3 billion as of January 2022. 

Global blockchain spending has increased 7x over the last four years

In 2018, the tally of global blockchain spending exceeded $1 billion, up from $0.95 billion in 2017

In 2019, global blockchain spending nearly doubled from $1.5 billion to $2.7 billion.

Two years later (2021), global blockchain spending totaled $6.6 billion.

This figure is expected to reach $19 billion by 2024.

The Value of the Blockchain Market is Predicted at Nearly $70 billion by 2026

The Blockchain technology market is growing in leaps and bounds.

Between 2018 and 2020, the blockchain market almost tripled from $1.2 billion to $3 billion.

It more than doubled to $7 billion in 2021 and is estimated to nearly double to $12.7 billion this 2022.

We expect it to reach $67.4 billion by 2026.

There are Over 80 million Blockchain Wallet Users Worldwide (Blockchain)

This year, we are seeing more blockchain users globally than ever before.

The number of global blockchain users has added approximately 35 million since its count of 45 million at the start of January 2020.

Cryptocurrency Theft has Almost Halved in Two Years (ciphertrace)

This statistic started in 2018 when the count of cryptocurrency thefts totaled $0.95 billion.

Surprisingly, this figure fell to $513 million in 2020 despite a considerable increase in DeFi investment across the globe.

The average value of stolen cryptocurrency was approximately 160% higher in 2019 than in 2020.

DeFi Market Statistics

Bitcoin is the World’s Most Valuable Cryptocurrency (CoinMarketCap)

A single Bitcoin (BTC)was $41,951 as of January 2021

The second and third most valued cryptocurrencies were Wrapped Bitcoin and Bitcoin BEP2, respectively. 

The former was worth $41, 932 while the latter was worth $41, 819.29

The fourth in rank was Yearn.finance with a value of over $30,000

Only two other coins surpass the $1000 mark in value—Ethereum (ETH) and Maker (MKR) worth $3,155.65 and $2,120.31, respectively.

As a take-home, five of the top nine cryptocurrencies by valuation are Bitcoin variants.

The Most Popular Cryptocurrency by 24-hour Trade Value is worth Nearly $3 billion (CoinMarketCap)

Going by data from December 29, 2021, Terra’s (LUNA) 24-hour trade value was $2.9 billion.

24-hour trade value means the total value of cryptocurrency traded in a day.

The runner-up is Chainlink at approximately $1.4 billion, followed closely by Fantom at $1.3 billion

Two other cryptocurrencies shared a 24-hour trade value of over $1 billion.

The Overall Cryptocurrency Market Cap Peaked at Approximately $2.9 Quadrillion (CoinMarketCap)

From 2017 to 2021, the overall market cap experienced unprecedented growth.

As of January 2017, the overall market cap was under $20 trillion.

That figure surged to over $550 trillion by January 2018.

After January 2021, the overall market cap skyrocketed to above a quadrillion dollars and, as of November 2021, peaked at $2.91 quadrillion.

Bitcoin’s Market Share is Over 2x Ethereum’s (CoinMarketCap)

The period from 2018 to 2020 saw a year over year increase in Bitcoin’s market share

In December 2021, Bitcoin’s market cap stood at over $905 billion – more than twice that of Ethereum ($451 billion).

Nevertheless, Ethereum holds a powerful position in the market cap. Its total market cap is more than that of the rest of the top nine crypto market caps.

Five Different Cryptocurrencies Process Over 100,000 Transactions Each Day (Coin Metrics)

From the records, Stellar (XLM) has been the most traded cryptocurrency, with over 7.1 million trades per day to date.

Ethereum (ETH) and Ripple (XRP) are each involved in over 1 million trades per day, while Bitcoin (BTC) and Litecoin (LTC) take a share of over 100,000 transactions per day.

Ethereum (ETH) Statistics

Ethereum’s Price has Increased Around 7x in One Year (CoinDesk)

Ethereum’s worth in September 2019 was $171

By October 2020, that figure had increased to $383.68, and only six months later, it grew by over $230.

Ethereum’s value was just over $700 at the beginning of 2021. But as of November 8, 2021, the value was approaching $5000.

Over 1.3 million Ethereum transactions are completed per day (BitInfoCharts)

A survey of Ethereum’s transactions over the last four years shows an explosion in its popularity.

As of December 2017, almost 947,000 transactions were completed, up from about 44 000 transactions in January 2017.

There were fluctuations in this figure until June 2020, when it was exceeded. From that time, however, it saw many increases and peaked at over 1.3 million in June 2021.

Ethereum’s Market Cap Grew Over 7x at the Start of 2021 (CoinMarketCap)

Ethereum’s market cap as of October 2020 was estimated at $43.78 million.

By April of 2021, it rose to $320.82 million. It didn’t stop there, as it almost doubled to $569.09 million in November 2021.

Bitcoin (BTC) Statistics

Almost Half of all Bitcoin is Mined in China (Cambridge Centre for Alternative Finance)

This statistic represents the current state of Bitcoin mining in China. 

China once controlled 75% of Bitcoin mining, but now only about 50% of Bitcoin is mined in China 

The United States comes in second place, with Bitcoin mining accounting for 17% of the global trend. Kazakhstan comes in third place, with just over 8% of Bitcoin mined there. 

Russia, Iran, Malaysia, Canada, Germany, and Ireland are the rest of the top nine Bitcoin mining nations. The mining decreases in the order of percentage from 7-2%.

Bitcoin Value Peaked at Almost $68,000 in 2021 (CoinDesk)

Bitcoin’s growth in value has been the fastest of any cryptocurrency. 

In 2016, the price of Bitcoin was just under $1,000

December 2017 came, and by then, the price had soared to over #13,000.

There was no significant growth, only fluctuations, until seven months later when the price almost hit the $60,000 mark.

It is now worth approximately $47,000.

Bitcoin’s Market Cap Peaked at Over $1.27 trillion (CoinMarketCap)

The figure in the above heading represents Bitcoin’s market cap sometime around December  2021.

That is more than twice its market cap in July 2021, which was $559.24 billion.

Since that one-time peak, the value of Bitcoin has stood at just over $905 billion.

The US trades more than 3x more Bitcoin than any other country (Statista)

In 2020 alone, the US was responsible for trades in Bitcoin worth over $1.5 billion.

That’s huge given that the next highest traders of Bitcoin, Russia, and Nigeria have never surpassed the $500 million mark.

Russia and Nigeria, however, have each crossed $420 million and $400 million of Bitcoin trades, respectively. 

The rest of the top five nations in Bitcoin trades are China ($198 million) and the UK ($193 million).

Trending DeFi Projects in 2022

Aside from the statistics about DeFi, several DeFi projects are going on worldwide.

These projects, as you will see, are designed to improve users’ experience with DeFi further.

DeFi has come a long way, but it still has a long way to go before it can become the de facto means of trade.

For instance, it is more straightforward than traditional means of trading but is still lagging in some areas that the former are excelling in.

This section is all about how these projects are helping to fix the flaws of DeFi and leave it at its best.

Alpha Finance Lab—Cross-Chain Decentralized Finance 

The Alpha Finance Lab is a DeFi platform aiming to provide better integration between various Blockchains and decentralized applications

DeFi is enjoyable, but there is still a lot of work to be done before it can bring the best of worlds—CeFi and DeFi while reducing the problems of either.

It is still quite complex and yet to approach the level of connection that exists between the financial systems and institutions in centralized finance.

The Alpha Finance Lab is an attempt to fix all of that.

Aave—Open Source DeFi Project

The Aave Open Source DeFi Project started in 2017 and helped enable an essential aspect of DeFi—DApps

DApps or decentralized applications are programs that run on a Blockchain or P2P (peer to peer) network and enable users to engage in transactions directly without any need for a centralized authority.

Aave also provides open-source liquidity pools for yield farmers and stakers alike.

Since Aave is open source, anybody can join, which serves a significant target of DeFi—accessibility to all.

InsurAce.io

This project has helped bring to the DeFi ecosystem a benefit that has long been in traditional financial solutions—insurance.

Cryptocurrency trading is highly risky and volatile, so it’s easy to see why some form of protection against the risks and losses is necessary.

And InsurAce.io is a decentralized insurance program, as the name suggests. It is based on the Binance Smart Chain and the Ethereum network

As insurance is becoming a top agenda in DeFi, many more people will like to join as they will feel safer. 

Terra Luna—International Decentralized Exchanges

Terra Luna is a DeFi project meant to improve the international trade of cryptocurrency and other financial instruments.

When it comes to international trade, even fiat currency is less than perfect.

Talk about all the rigorous protocols to be followed to exchange one currency for another.

Terra Luna hopes to achieve that need with its smart contract network, Terra, and its stable coin digital currency, Luna.

The union enables ease of transactions and trades across digital country borders.

Polka Dot—Bringing Smart Contracts Together

Polka Dot plays an instrumental role as a DeFi project.

As the description in the heading suggests, it serves as a bridge between different smart contracts, Blockchain networks, and DeFi protocols.

It can transfer information and data from one platform to another, serving as a cross-exchange platform.

Many Blockchain networks with low trust can benefit from platforms like Polka Dot since bridging them with other platforms will signify that they are safe enough for trade.

Conclusion

And that’s how we round off this post. The critical takeaway is; DeFi is heading to where it will replace other financial systems that are the norm now.

The world is preparing to embrace that future with open arms. The question is, are you?

Before you go, you might want to check out this DeFi course by Techlead.

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