Article by: Motiur Rahman
Daily transactions on the Ethereum network have oscillated considerably over the last few years. February 2018 was the last time that Ethereum was posting numbers of over one million transactions every 24 hours. Despite its variability, Ethereum’s network has maintained an impressive level of activity consistently for the last few years, firmly entrenching the digital currency as Bitcoin’s trusty sidekick. However, in the past few months, Ethereum transactions have skyrocketed thanks to decentralized finance (DeFi) yield farming. So much so that the number of transactions performed daily on the network has rivaled that of its 2018 performance, boasting over 1.2 million Ethereum transactions per day. Ladies and gentlemen, we have again reached phase Ethereum 1 million!
What Is DeFi Yield Farming
DeFi yield farming is all the rage right now, but what exactly is it? Basically, it is just a way for those who own crypto assets to “loan” their crypto to startups in exchange for more cryptocurrency. Tokens like COMP and MakerDAO run on the Ethereum network and offer borrowers and lenders a modest amount of tokens to encourage crypto loans. Without getting too much into the nitty-gritty of how it works, yield farming is essentially a way for anybody to become a lender and make some easy cash, bypassing the red tape usually required to get into the lending game. DeFi yield farming has exploded. Many have made millions, some have lost their life savings, and more and more people are joining the craze every day.