Ethereum is from its all-time high in January 2018 with a market value of 1423 USD is still a whole piece away. It looks better, however, in the section DeFi. There Ethereum experienced a Boom and reached in regular intervals again and again set new records. So now: because with a total of 814 million dollars, the number of ‘locked USD is at an all-time.
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Ethereum and Decentralized Finance – New ATH
The term around Decentralized Finance (short: DeFi) has made in the past year the round. He became a ‘Buzzword’ that has been seized on by many, and already as the next Hype was referred to. Even if the term Hype may be a little exaggerated, it is clear that DeFi could see a rise in the past year, a solid and constant growth.
The entire ‘industry’ around DeFi is, however, still in its infancy and has still a lot of growth potential. An indicator for the growth in Ethereum we see in the number and absolute amount of deposited ETH, and thus the U.S. Dollar.
This number (measured in dollars) has become Mature in the last year alone triple eight. Even if we consider the amount of deposited ETH, we see a growth of 50 percent in a single year. The entire, curly value (English was. total value of locked, short-TVL) in the past year, even in the case of 258 million US dollars. A year later, he is already well 780 million dollars. The number of locked ETH is increased from around 2 million ETH to the current level of 3 million ETH.
On Twitter, the new record is commented on high in the case of Ethereum already diligently, and as a good sign seen. The Twitter-User crypto wolf sees a continuing Trend and assumes that the TVL will continue to rise.
Applying some simple TA, I would not be surprised to see 1B locked in DeFi in the next month pic.twitter.com/Qm3TrcsmUn
— Crypto Wolf (@IamCryptoWolf) January 5, 2020
No risk, No fun? – The risk to the Lending
In times of low interest rates, there seems to be an interesting Experiment to DeFi and in the Lending business in on the action. Many forget, however, that this is an unregulated market. This means that all the opportunities as well as some risks are present. Mati Greenspan, the founder of quantum Economics, wrote in a recent blog post about the often ignored dangers. So he said:
The message goes out to anyone who is thinking about entering the Defined area. Be aware of the fact that it to buy, for example, as the risk is rich in Brazilian bonds and give the money to the state. To give money to a Crypto Startup in a different League, and significant risk, however, is once again rich. Even if I am glad that the market is growing and as such, one must be aware of the risks. There is no Fed that saves a, when things go wrong or the market is in a negative Phase.
Ethereum, a new all-time high – what you think about the issue of DeFi and the associated opportunities/risks?
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