Ethereum Activity Reaches 2 Year High as DeFi Craze Continues

The number of active Ethereum addresses has reached a 2-year single-day high amidst the ongoing popularity of decentralized finance (DeFi) products. 

According to research published by crypto analytics firm Santiment, the number of daily addresses interacting with ethereum spiked on June 29, culminating in a 2-year single-day high of 486,000 unique addresses. The previous high was established on May 5th, 2018 amidst another surge in ethereum activity. 

The number of daily addresses interacting with $ETH has spiked in the past 24 hours to a 2-YEAR SINGLE DAY HIGH of 486,000 addresses! The last time Ethereum’s address activity was this high was on May 5th, 2018. 😮👀 https://t.co/Dh6jyQ2v1X pic.twitter.com/XsQB1jmx07

— Santiment (@santimentfeed) June 30, 2020

Ethereum’s growing popularity has largely been attributed to the rising interest in DeFi products. According to data aggregator DeFi Pulse, the total amount of value locked in DeFi has surpassed $1.4 billion, with ether accounting for the majority. The amount of ETH locked in DeFi reached 3.1 million on June 29, up from 2.62 million at the start of the month. 

Despite the popularity of DeFi, some in the crypto space are concerned it may lead to unintended consequences. Waves CEO Sasha Ivanov warned last week that the surge in DeFi interest could lead to another “ICO bubble.”

He said, 

DeFi is the future, but it’s going to be coming through a bubble part of the cycle now, which can harm its long-term development.

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