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DeFi adoption is showing no sign of slowing down, as the total number of unique addresses hits 3 million.

DeFi Continues to See Exponential Growth

According to data from Dune Analytics, the total number of unique addresses interacting with DeFi has passed 3 million. As of Jul. 13, the analytics tool found 3,004,620 addresses using at least one of the 24 applications tracked by the platform.

A dashboard compiled by crypto enthusiast Richard Chen tracks a range of Ethereum-native protocols to find the total number of unique wallets interacting with the ecosystem. Established favorites like Compound, Uniswap, Aave, Curve, and Balancer are tracked on the dashboard.

Ethereum’s top decentralized exchange, Uniswap, came in as the most popular DeFi protocol by far, with over 2.3 million unique addresses. Compound, a decentralized money market, is currently placed second, racking up 325,000 addresses since launch.

Despite a market-wide drawdown in May, DeFi use has continued to see exponential growth. It took approximately 11 months for the number of unique addresses to grow from 100,000 to one million, yet subsequent growth is happening at faster intervals. As Messari Research Analyst Mason Nystrom pointed out on Twitter, the move from 1 to 2 million took 142 days, whereas the jump from 2 to 3 million clocked in at only 78 days.

142 days from one million to two million

78 days from two to three million

How many days until four million? https://t.co/vEQ5mCcN8p

— Mason Nystrom (@masonnystrom) July 12, 2021

While 3 million unique addresses is a significant milestone, it’s important to note that many users operate multiple addresses. Therefore, the real number of unique users is likely lower than the number of active addresses.

Over the last month, several so-called DeFi “blue chips” such as Synthetix and Compound have surged in value following faster adoption and new product launches. As the space heats up, many will be hoping for a repeat of last year’s DeFi summer.

Disclaimer: At the time of writing this feature, the author owned BTC and ETH.

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Synthetix Surges 22% as Ethereum DeFi Tokens Rise

Synthetix is soaring. Synthetix Leads DeFi Gains Synthetix closed the weekend in bullish mode after rising 21.9% Sunday through Monday. The DeFi protocol’s SNX token is currently trading at $9.17…

Source

Synthetix (SNX) prices reached a one-month high on Monday as traders looked for alternative upside bets against a mixed cryptocurrency market.

Bids for SNX/USD achieved an intraday high of $13.76 during the Asia-Pacific trading session, following an approximately 25% price rally that started Sunday. A flurry of technical and fundamental factors contributed to the sudden market demand for Synthetix tokens, including founder Kain Warwick’s update on the project’s much-awaited layer 2 solutions.

A new synthetic exchange underway

Layer 2 refers to the techniques for scaling blockchains by taking computation and transaction load from the parent layer and put them onto a base layer. Synthetix, an Ethereum-based synthetic asset platform, has been testing such scalability solutions since October 2020 to limit its dependency of Ethereum’s higher gas and transaction fees model.

Last Saturday, more than 12 hours before the SNX/USD rate started rallying, Warwick announced Synthetix would launch a layer 2 exchange in the week beginning July 26. He also revealed Optimistic Ethereum (OΞ) has the underlying technology that would back the synthetic asset (or Synths) trading platform.

*Synthetix posted a lagging rally after Warwick’s layer 2 exchange announcement. Source: TradingView*

“The initial Synths supported will be sETH, sBTC, and sLINK. In addition, the price feed for SNX will also be deployed by Chainlink,” Warwick stated.

Optimistic Ethereum, formerly known as Plasma Group, proposes to scale Ethereum blockchain via a unique mechanism called Rollup. Rollups are Ethereum-based Smart Contracts that receive transaction data from the blockchain’s main layer and send it to L2, where the computations take place. It then receives the computational result from the L2.

*Rollups process more transactions than Ethereum’s parent chain by compressing block sizes. Source: Messari*

So far, the Optimism team has demonstrated that it could process more transactions with lower fees than Ethereum. Meanwhile, Synthetix has chosen to become one of the earliest Optimism adopters in anticipation that it would inspire other decentralized finance projects to adopt it as well.

“If other major DeFi protocols can adopt Optimism, all transactions between them will be able to remain on L2,” wrote Will Comyns, a researcher at Messari, in his June 23 report.

“This means users will not have to wait an entire week for their funds to be integrated back on the Ethereum main chain before they can interact with another protocol.”

So far, the “optimistic” fundamental has proved beneficial to raise the Synthetix prices. That is partly because SNX serves as a collateral token to create Synth. In return, stakers receive additional SNX on their staked amount through Synthetix’s “inflationary supply” model. They also receive a fixed amount of fees in SNX on the trading of the Synth.

Golden cross

Synthetix’s latest 25% pump has pushed its 20-day exponential moving average (20-day EMA; the green wave) above its 50-day simple moving average (50-day SMA; the blue wave). As a result, the 20-50 MA golden cross has been instrumental in predicting the price rally from November 2020 to March 2021.

*The Fibonacci level confluence coupled with 20-50 MA crossover. Source: TradingView*

Nonetheless, SNX/USD remains at crossroads with the $13.85-$14.80 resistance area, a range with a history of capping the pair’s upside attempts, and which was also holding as support during its correction period between February and May 2021. Closing above the resistance area would have bulls test the following Fibonacci range of $16.37-$17.69.

Conversely, a sharp pullback from the $13.85-$14.80 would likely push SNX/USD towards the $11.92-$10.74 range. Such a move would also risk invalidating the 20-50 golden cross setup.

VORTECS™ data leaned bullish prior to SNX rally

Meanwhile, VORTECS™ data from Cointelegraph Markets Pro started rising 24 hours ahead of the Sunday rally, thereby detecting a bullish outlook for SNX prior to the recent price rise.

*VORTECS™ Score (transitioning from saffron to green) vs. SNX price. Source:* *Cointelegraph Markets Pro*

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points, including market sentiment, trading volume, recent price movements, and Twitter activity.

As seen in the chart above, the VORTECS™ Score flashed green at midnight Sunday with a peak score of 79 — up from as low as 47 in 24 hours — with the price continuing to climb higher to $13.88 thereafter.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.