Ethereum Transactions Surpass 1 Million Thanks to DeFi Yield Farming
Ethereum daily transactions have broken the one million mark in part due to the excitement being generated by decentralized finance (DeFi) and yield farming.
According to data from Etherscan, daily Ethereum transactions broke one million on June 22 for the first time since February 2018. The sudden jump in usage for ETH’s network has been attributed to growing interest in the DeFi space, particularly yield farming.
As outlined in a report by Forbes, DeFi yield farming has led to investors generating 100% or more in annualized yields. Yield farming involves investors leveraging DeFi products to generate a high rate of return, which can be compounded with “cashback” bonuses and incentives.
The report explains,
For example, according to yesterday’s rates, a user who lent out 1,000 DAI (equivalent to $1,000), and took out a loan for $2,500 worth of the BAT crypto asset would have generated 77.48% APY in COMP rewards paid out daily, assuming a COMP token price of $360.
Investors can take advantage of products such as InstaDapp’s maximize COMP mining feature to streamline the process of finding the greatest yields.
As previously reported, interest in DeFi products and ethereum has been on the rise since late May, when ether overtook bitcoin in performance relative to the dollar. According to data compiled by DeFi Pulse, the amount of value locked in DeFi has surged more than 58 percent since June 14 to a total valuation of $1.6 billion.
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