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The Ethereum decentralized finance market has undergone a strong rejection over recent weeks. Leading DeFi coins are down 30-80% since the highs they posted in mid August or early September.
One analysis by a noted crypto analyst shows that the average DeFi coin, including Ethereum, is down 60.5% since their local highs. Even the best-performer, Maker (MKR), has shed an astounding 30% since its highs.
For context, Bitcoin is only down around 14% from its recent highs.
Despite this strong drop in the DeFi market, a leading wallet has seen continued growth. This may suggest that the uptrend may continue in the long run and that the ongoing correction is just a short-term setback.
Related Reading: Ethereum Transaction Fees Surge to All-Time Highs After Uniswap Launch
MetaMask Hits 1,000,000 Users
On October 5th, MetaMask reported that MetaMask has exceeded one million monthly active users. This is up 400% since the 264,000 monthly active users using the product last year.
MetaMask is a browser-based Ethereum “smart wallet” focused on connecting to smart contracts. The system allows users to easily interface with top applications based on Ethereum-compatible blockchains such as ETH itself, Binance Smart Chain, and many others. It has become an essential tool for users looking to interact with DeFi as everything can be done with just a few clicks of MetaMask’s buttons.
The company reports that most of its daily active users are coming from four countries: the U.S., India, Nigeria, and the Philippines.
As to what exactly is causing this growth, MetaMask indicated that DeFi is playing a role.
“Additionally, over the last twelve months, significant growth in the adoption of DAOs, Web3 games and the rapid consumer uptake of DeFi products and services has further accelerated our growth curve. It’s not just the ability to buy and store Eth that’s powering our new phase of growth. When you think about it, people don’t really want a wallet. They want to invest, sell, lend, borrow. They want to use sites like Uniswap, Yearn, Curve, Maker and Aave to get that job done. MetaMask is simply the connective tissue.”
Related Reading: Critical On-Chain Signal Predicts That Bitcoin’s Next Move Will Be Upward
DeFi Trend of Growth Intact: Fund Managers
The trend of growth in the DeFi space is intact despite ongoing corrections, analysts say. The MetaMask news is just a testament to this assertion.
Santiago R Santos, a partner at crypto fund ParaFi Capital, recently said that the DeFi space is nearing escape velocity.
Among the reasons he thinks so is MetaMask’s one million user count, coupled with an introduction of billions of dollars worth of Ethereum-based stablecoins and infrastructure that should spur growth.
Related Reading: MicroStrategy’s Stock Continues to Soar After BTC Purchase
Photo by Tianyi Ma on Unsplash Price tags: ethusd, ethbtc Charts from TradingView.com Top Ethereum Wallet MetaMask Hits 1m User Milestone Despite DeFi Slowdown
