More

    ETH Price To Go Parabolic As Ethereum And DeFi Become A ‘Two-Headed Monster'

    • DeFi has been the “growth gist” of Ethereum in 2019
    • Ethereum and DeFi – each leading the growth of further development in the other

    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.

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

    The Two-Headed Monster

    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.

    Ethereum DeFi Growth & The Future

    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.

    Ethereum (ETH) Live Price

    1 ETH/USD =$169.6306 change ~ 1.16%

    Coin Market Cap

    $18.57 Billion

    24 Hour Volume

    $2.31 Billion

    24 Hour VWAP

    $169

    24 Hour Change

    $1.9756

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    AnTy
    AnTy
    AnTy has been involved in the crypto space full-time for over a year now. Before his blockchain beginnings, he worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,267FansLike
    2,734FollowersFollow
    4,093FollowersFollow

    Live Bitcoin Price & Latest BTC Chart News

    Today's Latest Crypto News

    Swiss Private Banking Giant Julius Baer Adds Digital Asset Trading And Crypto Custody Services

    The major Swiss wealth management and private banking group Julius Baer just launched, in partnership with Seba, its new custodial and trading cryptocurrency services. The...

    Iran's Ministry of Industries, Mining, and Trade Grant More Than 1,000 Crypto Miners Licenses

    Iran is regulating crypto miners after a new licensing regime has been introduced by the country’s government. According to an official representative from the Iranian...

    CME Gaps for Bitcoin Price Fill over 95% of the Time: Research

    CME Gaps are popular topics that frequently get talked about in the crypto market, which usually has seen Bitcoin dumping. These Gaps occur because unlike...

    The Upcoming Cut in Bitcoin Supply Means Zero for BTC Price Says, Analyst

    Searches for bitcoin halving on Google Trends on an uptrend “Makes no sense” to discuss if the halving is priced in says economist...

    WEF's New Global Consortium To Focus On Cryptocurrency Governance Framework

    The World Economic Forum (WEF) has announced the creation of a global consortium which will come up with a governance framework for all cryptocurrencies...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.