DeFi-related tokens have been caught within an intense bull market over the past several weeks, with many posting 100%+ gains
This growth has been fueled by return-hungry investors looking to take advantage of “yield farming”
This trend isn’t fading as fast as some analysts expected and could continue strong in the months ahead
Although built upon Ethereum, the DeFi sectors growth hasn’t boosted ETH’s price
One prominent investor doesn’t believe it will ever become the main driver of Ethereum’s price action
Despite many calling DeFi a “bubble” that would quickly pop, the trend has shown few signs of faltering. It has driven a massive influx of new users to Ethereum and is looked upon as a legitimate use case for crypto.
Much to the chagrin of many ETH investors, this sector’s growth has not yet benefited ETH’s price.
There are a number of theories for why this could be the case, and some traders have speculated that the collapse of DeFi will actually be what helps guide the crypto higher.
One prominent investor is now explaining that there are three likely reasons for why this is the case, and for why decentralized finance may never become an ETH price driver.
Ethereum Continues Consolidating as DeFi-Related Tokens Explode
At the time of writing, Ethereum is trading up slightly at its current price of $230. This is around where it has been trading for the past couple of weeks.
The crypto has been ranging sideways alongside Bitcoin for well over a month now. It has formed a range between $230 and $250, not being able to garner a clear trend.
Despite this, the DeFi sector – which is largely built upon Ethereum – has been seeing massive growth. It has even caused the number of daily ETH transactions to surpass 1 million for the first time since the late-2017 bull market.
According to data from DeFi Pulse, there is now a total of $1.7 billion locked within DeFi smart contracts. This is three times the number seen in March of this year.
Image Courtesy of DeFi Pulse
Three Reasons Why DeFi Won’t Drive Value to ETH
One prominent investor and former Goldman Sachs partner recently explained that there are three primary reasons why Ethereum hasn’t rallied alongside DeFi-related tokens.
He notes that the first reason may simply be due to investors preferring direct exposure to the tokens.
The second reason could be due to the introduction of alternative collaterals, making it non-essential to buy ETH to participate in DeFi lending.
The final factor may come from uncertainty surrounding whether the looming Ethereum 2.0 transition will break its composability – which he says is “crucial to DeFi.”
As for what could drive value to the crypto, he points to developments related to ETH2.0 and EIP-1559 progress:
“That is not to say that ETH is not a good investment, but it seems the drivers for ETH are more related to ETH2.0 and EIP-1559 progress than direct correlation with DeFi. So if you want DeFi exposure the perp or individual tokens are a better bet.”
Featured image from Shutterstock. origin »
The initial growth of the DeFi industry helped to lay the foundation of the current bull market. Innovation in the decentralized finance sector helped fuel Ethereum’s growth, and once Bitcoin got going, the rising tide lifted all other boats.
New data shows DEX volumes at their peak, with 2020 recording $5. 1 billion in the first half of the year. This number far eclipses volumes from the same period in 2019 and bodes well for the DeFi space, which has already shown signs of sustained growth.
The Ethereum blockchain has seen a two-year single-day high for daily active addresses at nearly 500,000. Generally, network statistics seem to indicate that the decentralized finance (DeFi) market, which has also grown popular in the same time frame, has contributed greatly to network growth.
Despite ongoing growth in the DeFi industry, security concerns remain in place today. Balancer, a project gained traction last week, has gone through a security incident over the weekend. Balancer is one of the DeFi projects gaining a lot of attention lately.
Decentralized finance (DeFi) had its best week to date last week, but that rapid growth only attracts more shady operators seeking to exploit vulnerabilities in these nascent systems. DeFi markets are still riding high from a wild week which saw total value locked across the industry hit an all-time high of $1.
Bitcoin is infiltrating DeFi, with now over 10,000 BTC locked in Ethereum. Could this growth signal a new role for BTC, as the primary choice of collateral in DeFi? Big...
Ethereum’s native asset, Ether, has outperformed Bitcoin by over 50% in 2020. With growth drivers in the form of DeFi, EIP 1559, and ETH 2.0, this trend is likely to...
Ethereum’s native asset, Ether, has outperformed Bitcoin by over 50% in 2020. With growth drivers in the form of DeFi, EIP 1559, and ETH 2.0, this trend is likely to...
The recent growth of the DeFi sector has primarily been driven by the recent launch of Compound, which has seen massive inflows of capital and new users due to the bourgeoning “yield farming” trend.
There has been a boom in demand for Ethereum in recent times, with much of this stemming from the explosive growth of the DeFi sector. Although this demand has yet to result in any type of bullish price action, it does appear that its growing utility is bolstering its macro outlook. That being said, the […]
Ethereum's DeFi space has been extremely lively over the past few days. The present set of events was triggered after it was reported that Compound had overtaken MakerDAO as the most staked asset on DThe post Ethereum's price won't follow DeFi's growth; at least not yet appeared first on AMBCrypto.
DeFi space has been seeing explosive growth for the past few weeks. The total market cap of DeFi has reached $6. 2 billion, as per DeFiMarketCap. Also, the total amount locked in DeFi has hit a new all-time high at $1.
Unlike Bitcoin, which has stalled in the low-$9,000s, Ethereum-based decentralized finance (DeFi) has seen exponential growth over the past few weeks. Camila Russo, a former Bloomberg journalist turned Ethereum publicist, noted on June 19th that the amount of value locked in DeFi applications is up 40% in the past seven days alone.
Ethereum (ETH) price growth is lagging behind the ongoing DeFi token rally. Ethereum (ETH) ecosystem contributors are figuring out whether that is cause for concern
Compound's new COMP token is only five days old but its price is soaring. Observers tie the rally to speculation over the future growth of decentralized finance.
ROAD TOWN, British Virgin Islands, June 19, 2020 — Tether, the blockchain-enabled platform that powers the largest stablecoin by market capitalization, and Compound, a decentralized lending market, are spearheading growth in the nascent decentralized finance (DeFi) space as USDT volume on the platform has surged above US$100 million. USDT has grown faster than all rival […]
Decentralized financial instruments, or DeFi, may be the next big thing in the cryptocurrency realm. Traders are guessing whether investing in DeFi assets is a smart bet
Ethereum’s DeFi is once again at $1 billion of value locked with MakerDAO accounting for over half of this amount. Other notable growth from Aave and Set Protocol continue to bolster...
The post Ethereum’s DeFi Back at $1 Billion, Maker Leads the Charge appeared first on Crypto Briefing.
DeFi is a budding ecosystem with a bright future. Some projects in the ecosystem are promising and are better alternatives to the ones in traditional finance. The growth of this ecosystem has also beeThe post Ethereum & DeFi: How dForce allegedly 'copied' other projects' codes appeared first on AMBCrypto.
While the larger blockchain ecosystem continues to expand across several industries around the world, the exponential growth of the decentralized finance (DeFi) sector in recent times seems to have caught all the eyeballs.
Over the past year, the importance of DeFi and its impact on Ethereum have not gone unnoticed. In fact, many in the ecosystem believed that the growth of DeFi would eventually translate into Ethereum'The post Ethereum's DeFi repressed by its Oracle issues; is there a solution? appeared first on AMBCrypto.
Throughout 2019 and the first part of 2020, the growth of the decentralized finance (DeFi) ecosystem captured investors’ attention, leading to a significant influx of investors into Ethereum while also giving rise to the fast-growing stablecoin sector.
Ethereum has seen tremendous growth throughout the past several years, onboarding a significant amount of noteworthy decentralized applications to its blockchain while also enabling the growth of a billion-dollar DeFi ecosystem.
The Decentralized Finance [DeFi] had kickstarted the year 2020 noting tremendous growth. Despite restricted growth, Bitcoin locked in DeFi reached an all-time high of 2.026 k, according to data providThe post Bitcoin locked in DeFi marks another ATH despite a volatile market appeared first on AMBCrypto.
The non-custodial trading platform on Ethereum, dYdX is the eight-biggest platform with $24. 6 million locked in total value. This decentralized finance (DeFi) platform has seen immense growth in the past year, having originated more than a billion dollar.
Cryptocurrencies have made immense inroads when it comes to elevating their status as a digital asset. For the world's largest cryptocurrency, Bitcoin, its comparison to store-of-value assets like golThe post Ethereum's scarcity narrative might be boosted by DeFi's growth appeared first on AMBCrypto.
dForce, Chinese decentralized finance (DeFi) platform, has secured $1. 5 million in its seed funding round led by several venture capital firms including Multicoin Capital, Huobi Capital, and others.
There has been tremendous growth in terms of decentralized finance or DeFi. Following the early 2020 rally, the total value locked in DeFi grew exponentially. However, these figures went down after thThe post Bitcoin locked in DeFi hits an ATH despite dull price action appeared first on AMBCrypto.
The Coinbase Wallet has just integrated with decentralized finance (DeFi) apps in order to allow its users to lend crypto assets and track the growth of their interest straight from the wallet app. As an announcement made by Coinbase on Wednesday says, Coinbase Wallet users are already putting millions into DeFi platforms through the wallet’s […]
Decentralized Finance “DeFi” has experienced tremendous growth in the past few months, and it looks like it’s only going to continue ramping up. According to DeFi Pulse, there is roughly…
The post Crypto’s New Deal: This DeFi Platform is Putting Unused Tokens Back to Work appeared first on CoinCentral.
Kyber Network is an on-chain liquidity protocol that powers decentralized applications, from exchanges and funds to lending protocols and payments wallets. In recent months Kyber has experienced tremendous growth due to the development of decentralized finance and has managed to establish itself as one of the reference protocols for this new sector.
Oracle platform Chainlink, the stablecoin lending platform Maker, and the EOS resource exchange REX led the growth in the DeFi segment of the cryptocurrency markets, according to TokenInsight’s latest report.
Traders encouraged by Ethereum’s impeccable growth in the decentralized finance (DeFi) sector have pushed its native token Ether to its five-month high. The Ether-to-dollar exchange rate cemented a new yearly peak of $222.
The amount of money locked in decentralized finance (DeFi) contracts has just blasted through $900M — nearly reaching $920M at the time of publishing. DeFi is increasingly looking like it will be the main driver of Ethereum’s growth as its funds continue to increase.
One of the key hurdles in blockchain technology is mass adoption, and with the growth of DeFi, it seems that mass adoption for this use case is finally within the horizons. As interest in DeFi is increasing, many have been weighing in on the trend and where the industry will bring DeFi in 2020.
Maker, the Ethereum-based DeFi protocol, remains dominant in decentralized finance, but competitors such as Compound, Uniswap, and Synthetix showed strong growth in 2019. Maker Remains the King of DeFi MakerDAO, creator of “the world’s first unbiased currency” DAI, enjoyed first mover advantage in the burgeoning DeFi market.
Uniswap, a leading decentralized exchange (DEX), has seen tremendous growth in the last week, having cleared all-time highs in terms of platform liquidity and ETH locked in reserves. DeFi Needs Liquid DEXes to Thrive Achieving widespread adoption of DeFi requires users to be able to access the entire financial stack in a permissionless and decentralized […]
The post Uniswap Liquidity Grows Following Additional Token Listings appeared first on Crypto Briefing.
The team behind Synthetix Network has unveiled protocol enhancements lined up for 2020. Existing infrastructure is slated for an upgrade and a range of new products are scheduled for later this year.
Decentralized Finance or DeFi for short is one of the fastest-growing sectors of the crypto industry. After a massive upswing in 2019, 2020 is promising to be another great year. Already the total value in USD locked in DeFi has surpassed $800 million.
Decentralized Finance [DeFi] protocols have been gaining popularity with the returns they have been churning out for the users who have locked in Ethereum [ETH] on the platform. This growth of the proThe post Ethereum locked in DeFi hits an all-time-high with TVL amounting to $813.7 million appeared first on AMBCrypto.
The number of active DeFi users, on the Ethereum network, is experiencing phenomenal growth. A recent report shows that this doubled, to 60,000, in only five months. And expectations, that it will form the foundation for the new financial economy, have never been higher, signaling tremendous confidence in Ethereum.
CoinGecko recently published its yearly report for 2019, which talked about the developments in the DeFi space and its potential for growth in 2020. The report suggested that DeFi will continue to pusThe post Ethereum locked in DeFi will exceed $1bn in 2020 appeared first on AMBCrypto.
Interest is growing in several distributed financial platforms based on Ethereum and other blockchain networks. The growth of the entire sector was around 130% over the last 12 months, with Ethereum-based apps continuing to dominate.
Binance released its report on decentralized finance applications (a trend most often affiliated with Ethereum) yesterday, highlighting the continued growth of the DeFi ecosystem; according to a Tweet by @CryptoWolf, as Ethereum locked in DeFi continues to rise, the price of the coin will rise in conjunction.
The research team at Malta-based crypto-exchange Binance recently published its third report on decentralized finance applications. The report analyzed network data provided by DAppReview, as well as The post Ethereum's growth gist in 2019 has been DeFi: Binance Research appeared first on AMBCrypto.
A lot has been said about decentralized finance, or DeFi, in recent months. Many people feel this is not the future of ethereum. While those comments are valid, recent statistics show something else entirely.
While the projection for Bitcoin price is just about anywhere from $5,500 to $40,000, the overall market is expected to see much growth, from increased staking, a substantial increment in the amount locked in DeFi and continued growth of Bitcoin network fundamentals to increased regulatory pressure.
2019 created many regulatory hurdles for crypto-businesses, mainly exchanges. Binance had to temporarily shut shops in the United States to comply with the regulatory norms, and soon launched its BinaThe post DeFi 2019 shows that lending is emerging as a growth market appeared first on AMBCrypto.
A quant has revealed how Ethereum (ETH) saw a death cross in this indicator shortly before bearish momentum took the asset in full force. Ethereum Formed A Death Cross In Funding Rates Earlier In a CryptoQuant Quicktake post, an analyst has shared a chart for the Funding Rates of Ethereum.
Ethereum is facing mounting pressure after weeks of relentless selling and underwhelming price action. Since January, bulls have failed to regain control, and ETH has continued to bleed value in a market increasingly dominated by fear and uncertainty.
Ethereum is once again under heavy selling pressure after losing the critical $2,000 level — a psychological and technical zone that bulls have struggled to defend in recent weeks. With price action turning increasingly bearish, investor sentiment is weakening, and analysts are warning that a deeper correction may be on the horizon.
The Ethereum price will be happy to see March come to a close after posting one of its worst first-quarter performances ever. According to CoinGlass data, the price of ETH is down by nearly 50% in the last three months.
Following a period of intense price consolidation, the Ethereum (ETH) market experienced an eventful trading week that featured a damning rejection at the $2,100 price level which has emerged as a major resistance zone in recent times.
Ethereum has experienced a crucial surge above the $2,000 mark, a key level that bulls have struggled to reclaim since March 10. This breakout brings renewed optimism, as analysts believe a stronghold above this level could trigger a rally toward higher prices.
According to an X post by crypto analyst CryptoGoos, Ethereum (ETH) may be nearing the end of a bear trap. The analyst predicts that the cryptocurrency could surge past its recent range high of $4,000, potentially eyeing a new all-time high (ATH) of $10,000.
