According to DappRadar, a blockchain data provider, DApp trading volumes have reached $270 billion this year, thanks to a booming DeFi sector. To put things in perspective, last year’s total was only $21 billion. This year’s transaction volume grew by an astonishing 1178% with Ethereum’s DeFi ecosystem controlling up to 95% of the total market share.

The report noted that funds had been moving from Bitcoin to Ethereum throughout the year, thus, confirming comments from hedge managers that investors are tilting towards Ethereum. Furthermore, it speculates that attractive yields from DeFi projects were the “main trigger of Bitcoin flowing to Ethereum.” Wrapped Bitcoin and renBTC were also pivotal in tapping into Bitcoin’s vast reserves of liquidity.

Surprisingly, just 10 DeFi DApps accounted for more than 85% of Ethereum’s total transaction volume. As of November, these decentralized apps had over one million active users. Out of this number, Compound, Uniswap, and Swap dominated the market with 930,000 collective users.

As per the security of DeFi projects, DappRadar estimates that more than $120 million was stolen across 12 major incidents this year.

Whilst the report covered other issues like Ethereum’s scalability problem, it highlighted insurance and NFT marketplaces as other important sub-niches in the DeFi ecosystem. Overall, DappRadar believes that DeFi will play an even more influential role in 2021.