Following Bitcoin, Ethereum price has also fallen back to $138 after rising to the early December level. In the past 7 days, the second-largest cryptocurrency has only seen an increase of 6.81% in its value.

ETH has a long way to go in terms of price as it is still down 91% from its all-time high of $1,570.

Trader Scott Melker feels Ethereum will only rise in value if Bitcoin rises as well, like any USD pair as ETH is currently sitting at the top of a descending channel and pushing against resistance.

But according to analyst CryptoWolf, Ethereum price will soon go parabolic and the reason behind this sentiment is the significant increase in the amount of ETH locked in DeFi.

ETH locked in DeFi going parabolic.
Price will follow, i'm accumulating AF. pic.twitter.com/JjgetnovqN

— CryptoWolf (@IamCryptoWolf) January 8, 2020

Ethereum’s network growth is already on an upward trend while Ernst & Young is doubling down on its bet on Ethereum.

Ethereum's network growth is on an upward trend. pic.twitter.com/rsjGAA0Ura

— Adam Ship (@AdamSophrosyne) January 8, 2020

Ethereum started 2020 on a good note as the ETH locked in DeFi shot past $3 million for the first time ever. In less than two months, the ETH locked in DeFi surged by 40% and 84% in the past 6 months, as per DeFi Pulse.

Decentralized Finance has become one of the most significant areas for Ethereum with over 100 projects and team-building protocols and applications in 2019.

This growth where most of the decentralized financial ecosystem is built on Ethereum has been a continuing one despite the price of Ether fluctuating within a $100-$135 range.

“Ethereum and DeFi have become a two-headed monster, each leading the growth of further development in the other,” stated Binance in its latest research.

DeFi actually has been the “growth gist” of Ethereum in 2019, from the users’ perspective as 90% of all on-chain volume for Ethereum-based Dapps come from DeFi-related applications.

Taking a dive into the DeFi space reveals that Kyber was the most used project, with a total of 35,570 unique users last year. Compound follows behind which is the leader in the finance sub-category.

MakerDAO, which has been historically at the heart of DeFi still has a 56% dominance but found its nemesis in USD Coin (USDC), a fiat collateralized stablecoin issued by Centre consortium by Circle and Coinbase.

Although DeFi still “represents a tiny segment of the crypto-industry,” it is one of its “most vibrant areas.”

In the Ethereum-based DeFi sector, Binance expects several trends to follow this year including the end of Maker’s dominance and its Dai savings Rate (DSR) to become one of the most important rates in the DeFi space.

Popular stablecoin USDT (Tether) is also likely to be integrated in the near future into some DeFi protocols. The leading cryptocurrency exchange further forecasts the launch of DeFi derivatives on Ethereum mainnet.

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