After a chaotic 2022, the cryptocurrency
industry started out this year full of hope for a better turnout. Users’ and
investors’ confidence in the market was battered by the various events that
marked the industry last year. However, Bitcoin (BTC), the largest digital currency, gained significant
traction last month. At the start of the year, the price of BTC stood at $16,500. However, by January 30, the price surged by 45% to about $23,955, giving investors hope for better days ahead for the industry. This price rally is also
reflected in the decentralized finance (DeFi) industry.
Finance Magnates reports that the DeFi market saw its tokens, minus
stablecoins and wrapped tokens, collapse by 72.9% in 2022 “with various
governance and utility tokens losing over $48.4 billion in value.” The
stablecoin market, for its part, decreased by 16.6% to $27.3 billion by year-end.
However, a new dataset collated by BitcoinCasinos.com shows that the
total number of DeFi users increased by 35% year-over-year to 6.7 million in
January 2023. Furthermore, analysis by Dune Analytics reveals that the total
number of users engaging in DeFi projects skyrocketed from about 110,000 users
three years ago to 4.96 million users in January 2022. In fact, by the end of
last year, over 1.8 million new users had joined the DeFi industry. The data also shows that this number increased to 6.77 million users in January…
