Growing Number of Active Addresses on NEAR Network Reaches New Peak During DeFi Renaissance
The Near Protocol, a layer 1 blockchain, has experienced a significant increase in activity and total value locked (TVL) in its decentralised finance (DeFi) sector. As of April 8, 2024, the 7-day average of active addresses on Near Protocol is at its highest level, surpassing the 2 million mark for the first time on April 6.
The surge in activity appears to be primarily driven by stablecoin transactions. The launch of FRAX stablecoin on Near in mid-March and its subsequent addition to Burrow, a leading DeFi protocol on the network, has contributed to this increase.
The TVL for Near-based DeFi protocols has seen a substantial rise since the beginning of the year, surging from less than $100 million to over $308 million as of April 8, 2024. This is the highest level since August 2022, when the TVL was at its lowest.
Burrow Finance currently holds approximately $200 million in TVL, representing 65% of Near's DeFi ecosystem. The lending protocol on Burrow offers an annual percentage yield (APY) of 27% for USDC and 26% for USDT, which have attracted many investors to migrate from Ethereum or other chains due to the high APY figures on Near-native USDC or USDT.
Supply APY for USDT on Aave, another DeFi protocol on Near, is over 13%, while for USDC it is 6%. These high yields have further enticed investors to the Near Protocol.
The rapid increase in activity and TVL on Near Protocol was accompanied by a significant increase in daily transactions. On April 4, 2024, daily transactions on Near Protocol broke above 10 million for the first time, and while the current level is 8 million, it remains significantly higher compared to the beginning of the year when it was much lower.
Despite the growth in the Near Protocol's DeFi sector, information about the founder or founders of Burrow Finance is not readily available in the search results.
In conclusion, the Near Protocol is witnessing a surge in activity and TVL in its DeFi sector, driven by stablecoin transactions and high APY figures. The launch of FRAX stablecoin and its addition to Burrow have played a significant role in this growth. While the identity of Burrow's founders remains unknown, their contribution to the Near Protocol's DeFi ecosystem is undeniable.
