Is DeFi in a Bubble?

A look at active user of key projects


DeFi has been on fire recently. Your favourite tokens have all skyrocketed to levels not seen in months, or even years.

Compound has launched the COMP token on exchanges and its price has pumped like it is 2017 all over again.

We also do see yield hacking technics reaching new highs from BTC pools to COMP farming and so on.

In the same time, Gas prices have reached dramatic levels and represent a big pain for everybody involved in DeFi, from small users to VCs, which fund the costs associated with smart contracts interaction of DeFi protocols.

So are we in a bubble yet?

We take a look at DeFi user trends of big successful DeFi projects: Synthetix, Ren, Aave and Numerai.

Synthetix - SNX

Daily active users have been on fire.

Average daily active users: 280.

Ren - REN

The growth of active users is just getting started with the RenVM mainnet launch.

Average daily active users: 120.

Aave - LEND

Aave has witnessed some stratospheric rises in daily active users.

Average daily active users: 175.

Numerai - NMR

Numerai is consolidating after an impressive growth in active users, certainly hit a bit with gas prices.

Average daily active users: 50


When looking at active users, we see that DeFi top projects are not in a bubble at all. User growth is encouraging and demonstrates that DeFi is only started.

Even if gas prices are high at the moment, user growth continues. It is good sign for the future.

On the valuation front, token prices have skyrocketed in recent months so we would be a little cautious going forward. For new participants, this is not the time to invest all your life savings at these valuations.

For those who bought some months ago, the ride has been amazing.

Thanks for reading

Secret Salsa

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