The last year for most crypto-currencies was pretty bleak, even for Ethereum. A certain branch of the crypto industry has shown in spite of the gloomy market Outlook impressive growth – and this was the decentralised financial sector.
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Ethereum-based DeFi shows itself unimpressed
Ethereum had to 2019, a pretty bleak year. To the center ETH was destroyed completely and fell back again to $ 125, not far from the low of 2018.
Basically, the network has improved, however, and a big part of it is due to the distributed financial accounting. DeFi makes it possible for investors to lend digital assets on a secure Smart Contracts or to borrow. The interest rates vary depending on the demand for a certain asset.
It is an important step to make from banks, since there is no intermediary, the fees required, or the financial flow in a controlled manner. The only charges net charges, e.g. for Gas – and anyone can participate, anywhere.
DeFi has grown so strong that even large Mainstream media like the Financial Times reports about it.
In the year 2019 DeFi grew up on the Ethereum base by 60%, and there are now a record 3 million ETH (or 2.75% of the portfolio), which are stored according to defipulse.com in DeFi.
Also, the total value in Dollars is close to the record high of $ 700 million, as more crypto-based options are available and the industry is expanding.
If the Ethereum-prices recover, will reach this number soon to be a billion dollars. The ETH value may increase as soon as investors require less of it than security.
The Only thing that could dampen the DeFi-growth this year, is the regulatory pressure and the AML/KYC restrictions. At the Moment everything is still very “wild West”, as it were, the crypto-exchanges in 2017, before the governments wanted to know who has what and where it goes.
When ETH bullish?
The potential billion-Dollar DeFi-Ecosystem at the Moment is largely from Ethereum-dependent. Ethereum is the global Standard for Smart Contracts and Dapps, which is why it is for the industry was taken over.
The Problem at the Moment – for investors, anyway: The ETH-prices lie on the floor for all except for those who have already bought three years ago.
So it makes sense to keep the ETH as a security and interest for those who do not want to trade in a two-year bear market on a daily basis.
Ethereum has in principle a lot to offer. The first stage of Serenity will be rolled out this year, the yield potential by Staking offers.
The prices may recover as in the past. The big billion-Dollar DeFi-milestone is not perhaps so far away.