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The one million users’ report of the DeFi market may not be accurate

Everyone has seen the DeFi ecosystem grow in 2020. Considering the same, even the crypto community has made strategies to push the Decentralised Finance (DeFi) market to mainstream. The growth of the ecosystem was proven correct after the Dunes report came out last week.

Dune Analytics, an Ethereum metrics site, reported on Friday that the number of unique addresses for the DeFi market, has now crossed the one million mark. But are these figures accurate?

The Dune report has been generated by summing up the total users of many renowned DeFi protocols. These include Compound, Aave, Uniswap, etc. It also stated that this number is ten times of what was recorded on 6th December 2019. So, in short, the DeFi market has grown ten folds in just a one-year duration.

On the other hand, Rabbithole co-founder Brian Flynn said that these numbers would be much lower than what has been recorded. This happens because some of the DeFi users try to secure their privacy by deploying numerous address. It means multiple addresses in the given report maybe belonging to the same users.

According to Flynn,

“The reality is that the number of unique users is only 10-15% of that. That’s the real metric that matters.”

This all implies that the DeFi market still has a long way to go before getting into the mainstream.