Decentralized finance (DeFi) protocols have enjoyed a record breaking month as data from The Block has shown that they have generated $20 million more than they were able to do in January. This means that this month is the highest ever in the history of DeFi revenue generation.
According to the data, DeFi protocols recorded an increase of 14.4% which translates to $171.5 million in revenue generated. In January, the protocols were able to cumulatively raise $149.9 million.
Leading decentralized Exchange, Uniswap generated over 40% of the revenue while it is closely followed by Sushiswap with 20.9% and Compound was able to raise 15.9% of the total fund generated. The report also pointed out that only Balancer was unable to break its monthly revenue record as every other Protocol set new highs this month.
A large bulk of this revenue went to lenders, liquidity providers, and others on the supply side. Protocol owners which include token holders and developers also got a sizable chunk of the pie. Not only that, those who participated in referral programs were also able to be a piece of the revenue.
The record making month is in tandem with the bull run of Bitcoin that was able to break the $50k mark this month and also got to an all-time high above $58,000. Generally, the crypto industry has witnessed a bull run that started towards the end of last year.
One other reason for this record breaking month could be the influx of new investors into DeFi after Robinhood’s action on the GameStop stock that led to a wider and more measured call for decentralized finance. Many analysts believe that the actions of the centralized traditional financial institution was a plus for DeFi which was, hitherto, beginning to gain traction among the public.