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

Must Read

Bitcoin Bull Rally Incoming? Market Price Keeping Below the Production Cost Ahead of Halving

Bitcoin is staying above its crucial level $9,000 for sometime now while experiencing some...

Trader shares the “Very Reason All Investors Should Hold some Bitcoin”

In 2020, the price of the leading asset had one of its worst one-day drops...

Bitcoin Sees an Influx of Retail Interest with Investors Doubling Down on HODLing

After tumbling down to below $6,500 yet again, Bitcoin went back above $7,000 in...
- 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

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,...

WorldMarkets continues with the success of its trading artificial intelligence

Today we live in the information age, and access to information is unlimited. And that produces the paradox of misinformation. That's why...

MyTvchain.com Records Growth for The First Blockchain ​​Web Tv Platform Dedicated to Sport Clubs And Athletes

Sophia Antipolis (France) and Singapore: The first web TV platform dedicated to sports clubs and athletes opened in...

Crypto-Broker Instacoins Receives Operating License in Estonia

Instacoins Estonia OÜ, a cryptocurrency brokerage, is pleased to announce it has received an operating license from the Estonian Financial Intelligence Unit (FIU). The...