These projects will increase by 50 times according to the analyst

  • Data from Dune Analytics shows an increase in the total number of protocol users in Ethereum DeFi with 898,598.
  • Trader Aaron Arnold expects an up to 50x increase in major DeFi protocols on Ethereum.

Ethereum’s DeFi is gaining momentum once again. After suffering a correction in the price of its most important tokens and a drop in its Total Value Locked (TVL). Now, that figure shows the industry’s recovery and hit a new all-time high over the weekend of $ 13.7 billion, according to DeFi Pulse.

Ethereum ETH


The data from Dune Analytics also shows a boom in the number of users interacting with different protocols in the DeFi industry. Since the beginning of June this year, the number of users has increased by 100% compared to December 2019 to reach 200,000 users and continue the trend to reach 898,598 today.

Ethereum ETH


Despite the significant growth, the number of users does not reach one million. This indicates that there is still potential for significant growth in TVL and core token performance. By comparison, the number of addresses with a balance greater than 1 for Ethereum has been steadily increasing since the end of 2019, according to data from Glassnode, surpassing 40 million.

Ethereum-based protocols with the highest probability of profit

In that sense, cryptocurrency trader Aaron Arnold has identified the DeFi industry protocols that he believes will receive a significant increase. It also relies on data from Dune Analytics to disprove investors who have declared a bear market for the DeFi sector:

I’m here to postulate that the next big alternative trend will still be DeFi. DeFi is still in an uptrend and the trend is your friend. Anyone who says DeFi is dead simply didn’t pay attention. Yes, we’ve seen DeFi degenerate food coins hollowed out, tacos, hot dogs. They are dead … It is very common in cryptocurrencies to go through periods of bubbles. Once the bubble opens, degenerate coins are eliminated and more legitimate coins, coins with higher resistance, prevail longer …

Arnold recognizes the potential for major protocols such as Uniswap (UNI), Compound (COMP), Aave (AAVE), Synthetix (SNX), Yearn.Finance (YFI), among others, to offer great rewards to investors. Although it excludes a 100x profit, the trader expects these protocols to increase 10, 20 or even 50x.

Although the total frozen value for individual projects has had a period of decline, over the past 30 days you can watch individual projects: Compound on the rise, Aave on the rise, Synthetix for approximately the last 15 days on the rise.

Finally, Arnold expects an increase in the participation of institutional investors in 2021. The trader says his contacts in trading and traditional finance have expressed “a great interest” in the DeFi sector.

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