The DeFi ecosystem is on a roll and new blockchain networks are trying to get in on the game, touting better scalability, security and efficiency. But despite all its recent issues, Ethereum still remains the number one choice for DeFi projects, capturing the lion’s share of the market even though it faces challenges from network congestion and high gas fees.

According to a recent report by ConsenSys, 2.91 million unique ETH addresses were used for interacting with at least one DeFi protocol during Q2 2021. While this number is only a fraction of the total number of Ethereum addresses till Q2 2021 (161 million), it has risen by 65% since Q1 2021 even though the cryptocurrencies’ sector as a whole had turned bearish by then.

In addition to offering attractive yields, the DeFi community has been successful in raising awareness and attracting new investors, helping drive higher interest and supporting this growth. Another important factor that has worked in DeFi’s favor is that it is easier to understand than the world of cryptocurrency trading.

Meanwhile, non-custodial wallets like MetaMask have made this space more accessible, letting users manage multiple accounts with ease. In a little over five years, the wallet claims to have over 8.5 million monthly active users till date, up from 5 million just after Q1 this year.

The TVL in the DeFi space stands at over $120 billion and most of the protocols in the top 15, with the exception of PancakeSwap, run on Ethereum’s network. The top 20 DAOs (decentralized autonomous organizations) account for $6 billion of total digital assets.