Crypto researchers are convinced that DeFi is Ethereum his “true value” (not crypto kitties…)

In the years 2017 and 2018, Ethereum, seemingly, had only one purpose: It was a platform for crypto-entrepreneurs, to launch the Initial Coin Offerings (ICOs).

Avi Felman, the head of the trading block tower Capital, recently on Twitter wrote:

“The all-time high price of ETH (from $1.400) is likely to be a diversion, and was driven by a certain dynamic: the purchase of ETH, to place it in ICOs, no sales pressure, because the ICO treasure chambers didn’t think of it.”

However, given the recent growth of decentralized Finance – better known as a DeFi – coming analysts to the conclusion that Ethereum actually has a Killer use case.

DeFi is Ethereum his “real value”: White crypto-Ratings

Due to DeFi the network activity in the case of Ethereum has increased dramatically. How Blockchain Analytics company Santiment reported at the end of June, has exceeded the daily number of newly created ETH-addresses “just another 100,000”.

Ethereum-network-growth chart of Santiment

Also, the number of transactions continued to increase. According to ether scan in the last week, several days of 1.000.000 ETH-transactions have been processed.

The market research company Knows Crypto Ratings wrote on 2. July about this extremely strong network growth:

“The activity on the Ethereum block Chain is approaching a level not observed since the peak of the ICO-bubble. The withdrawal of ETH from the stock exchanges has reached a six month high. It is obvious that this activity with DeFi hangs together.“

To the question of why this is important, said White, the Crypto Ratings that Defined “the Ethereum block Chain gives a real value, unlike anything we have seen so far”.

“Forget crypto kitties, forget games – DeFi is where it is,” the company said.

ETH has not yet benefited from DeFi… until now

Although DeFi increases the acceptance of Ethereum and Blockchain place gives a reason, the value of which has not ETH and still benefits from it.

As the below chart shows, stagnated in the second largest crypto-currency in the last few weeks. In this period, ETH is between 220 and 250 dollars was trapped and deviated little from this range.

Ethereum-price-Chart from trading view

The crypto-currency seemed to ignore the fact that Defined and sector-related Altcoins exploded in the last few weeks later. Data indicate that DeFi-Coins are alone increased in the last 24 hours, a total of 4.6 per cent.

Interestingly, some come to the conclusion that Ethereum will not obtain the DeFi-Coins may.

Crypto-Asset-Analyst Ryan Watkins about believes that the ETH is no reason for a rally, as the DeFi-Coins parabolic run from.

He quotes in the first line of the growth of stable coins like USDT of Tether and DAI MakerDAO, which will enable investors to “local crypto to handle Assets such as ETH for their speculative fervor” in order to gain access to the DeFi.

Cryptocurrency Market