ETH-Based Loans Jump In 2019 As Market Prepares For Ethereum 2.0 With Proof of Staking (PoS) In 2020
All the latest metrics show that Etheruem loans are on the rise during this year. Right now, Ethereum is leading the world of decentralized finances, being the most popular smart contract platform in the market.
One of the main speculations for the reasons behind this is that Ethereum is set to finally move towards its proof of stake protocol next year, so people want to capitalize on this huge event that is coming.
A recent report published by DeFi Pulse shows that ETH debts were basically non-existent two years ago, but they exploded in 2019, as there is almost $3 million USD in loans based on the Ethereum network at the moment.
— DeFi Pulse 🍇 (@defipulse) November 12, 2019
This sparked speculation and one of the most popular theories is that the numbers are about to explode. People may be rushing to accumulate at least 32 ETH. Without this amount, you will not be able to participate in the staking process, so you will lose the chance to get a lot of money.
Ethereum Still Leads In DeFi Field, But There’s Competition
Ethereum may still be the leading company in the decentralized finances field, but the truth is that some other platforms are also carving their place in the market. Harmony (ONE), for instance, can be considered on the major competitors that the network has to face in order to maintain its place at the top. Tron and EOS are also fierce competitors.
If the network is to maintain its place, it’ll have to work hard. There are still many issues that prevent the DeFi industry from reaching mainstream adoption. After solving its scaling issues and finally upgrading to ETH 2.0, most people hope that Ethereum will finally start to solve these accessibility issues in order to draw more people to the crypto market.