Analysts: Defi is the element behind Ethereum’s massive growth

Recently, Live Bitcoin News come out with a story about the force Ethereum has been over the past few weeks. While BTC has largely taken the spotlight and crypto traders and fans everywhere have spoken of its strength, Ethereum – in many ways – has surpassed the jumps and the prize fluctuations in bitcoin, gaining around 300% in value in the last few months alone.

Ethereum surged like there’s no tomorrow

Now the currency is trading at its highest level in about three years, and it is widely believed that Ethereum – which is the world’s second largest cryptocurrency and bitcoin’s biggest competitor – is moving in tandem with its currency. mother, but that’s not quite the case lately. If Ethereum can master BTC the way it has, something else is likely to lead his power.

Many analysts believe that the strong growth of decentralized finance (Defi) Arena is what drives Ethereum forward. The big argument behind Defi lately is that it can sort of reorganize traditional financial tools, such as insurance and lending, to somehow be safer and more accessible to everyone. At the time of going to press, a unit of Ethereum is trading at well over $ 1,400, having broken its previous high in 2018.

Brian Norton – COO of My Ether Wallet – explained in a recent interview:

2020 saw the explosion of the Challenge ecosystem on Ethereum – first reaching $ 1 billion in total locked-in value in February, now $ 20.5 billion in just 11 months. This growth has attracted many new users seeking returns not available on bitcoin from centralized intermediaries.

He added that many people have been accumulating money, time and energy in the Ethereum network since the launch of Ethereum 2.0, which is expected to make the blockchain more scalable and efficient in terms of payments, transactions and creation of future pieces. and nominations. This made the Defi space jump as it did. He declares:

What I’m looking at is developer activity on Ethereum, as it serves as an indicator that new and better use cases are coming, which will increase demand for the native asset. Ethereum has more than five times as many active developers as Bitcoin and is adding developers faster every day.

Defi is a big contributor

According to Paolo Ardoino – CTO of Bitfinex – the Defi space has caused some headaches for the ETH community, but in the long run it is likely to bring a whole new level of strength to the ETH network and allow it to support the increasing demands that people have placed on it. He mentioned:

While the explosion of projects in Defi has caused growth difficulties for Ethereum, overlay solutions are being developed to help the network evolve.

Key words: bitcoins, Challenge, Ethereum