Ethereum Records Double the Gains of BTC as DeFi Smashes Through $1 Billion

Must Read

Can XRP defend its price?

Could XRP defend its price action, and rise back to $0.30? Here is my view on how...

With a 110% increase in crypto wallet adoption rates in 2020 are we set for another Bitcoin boom?

2020 has been a massive year for crypto adoption. In July alone, over 3.5 million crypto wallet app downloads...

DeepTradeBot: The innovation of large companies at your service

DeepTradeBot is a collection of automated trading tools developed by Deep Neuro Networks LTD, a London, England-based company...
- Advertisement -BTCClicks.com Banner
Earn Free Bitcoin

Decentralized Finance (DeFi) reached a new milestone today, exceeding $1 billion in total locked value.

DeFi refers to the digital assets, protocols, traditional financial products, and decentralized applications (dapps) built on the blockchain. Here traditional financial products are transformed into transparent and trustless protocols.

At the beginning of the year, just under $700 million were locked in DeFi which has now surpassed $1 billion.

“$1 billion locked up in DeFi is a pretty cool milestone to see,” tweeted Bitcoin bull and co-founder of Morgan Creek Digital, Anthony Pomliano.

Out of the $1 billion total locked value in DeFi, a whopping $682 million belongs to ETH. In comparison to 3.1 million of ETH locked, only 1.6k of Bitcoin and 66.5 million of DAI are locked in DeFi.

Maker meanwhile is the leading project. This Ethereum-based lending platform has a dominance of 60.58% in DeFi space. Interestingly, out of the 3.1 ETH locked in DeFi, 2.7 million is from Maker.

A decentralized credit platform, Maker supports the USD-pegged stablecoin Dai. To open a Collateralized Debt Position (CDP) on the platform, the user has to lock ETH as collateral and generate Dai as a debt against that collateral.

Ethereum surges on DeFi’s growth

As the amount of ETH locked in DeFi rises, the value of Eth is also seeing an increment. The second largest cryptocurrency by market cap of $24 billion, ETH is currently trading at $220, a level last seen five months back.

While BTC is up only 33% YTD, ETH has jumped 70% against USD and further continuing its rise.

Moving forward, trader CryptoWolf who said this locked ETH in DeFi would push prices up sees $220 as the resistance which if the crypto asset manages to clear, we can target $290.

But with Blockchain Capital making a bold prediction of the amount locked in DeFi hitting $5 billion in 2020, as investor and trader Josh Rager says “sub-$200 ETH” will look like “a gift” in the next two years.

While ConsenSys sees the explosion of synthetic assets and derivatives to create billions in value, Lucas Campbell of DeFi rate hypothesizes a trillion dollar case for Ethereum. This case is championed by DeFi which creates “a new paradigm for global finance” with Ethereum at its center.

“A trustless economy requires trillions in economic bandwidth. And that’s the trillion dollar case for ETH,” summarized Mythos Capital founder Ryan Sean Adams.

- Advertisement -
- Advertisement -

Latest News

Wyoming Amends Insurance Code to Allow Insurance Companies to Invest in Bitcoin & other Cryptos

In the first provision of its kind, Wyoming is allowing the domestic insurers to invest...
- Advertisement -Earn Free Bitcoin

Flyp.me Instant Crypto Exchange Now Supports REN Token Trading

Decentralized finance is leading the way of the cryptocurrency industry, with the REN Protocol at the front. REN Protocol is...

BLOCKCHAIN OVERCOMES POSSIBILITY OF FRAUD, LACK OF TRANSPARENCY AND TRUST IN THE GAMBLING INDUSTRY

DATE: 07/08/2020 In a recent study carried out by the UK Gambling Commission reveals that the gambling industry has...

The Kuailian Ecosystem, Bringing Blockchain Technology To The World

10 years have passed since the birth of Bitcoin and the first use of Blockchain, a technology that has not stopped evolving,...

Its’ Finally Here A 100% Local Non-Custodial P2P Cryptocurrency Marketplace.

Finfreeotc is soon launching a one of a kind peer to peer cryptocurrency market place. Their marketplace is 100% non-custodial,...