ETHEREUM BASED DEFI DOESN’T CARE
Ethereum was a rather dull year in 2019, which ended 6% lower than when it started. The mid-year pump was completely destroyed when ETH again fell to $ 125, not even lower than 2018.
In fact, the network has continued to improve, much of which is due to decentralized funding. DeFi enables investors to borrow or borrow digital assets through reliable smart contracts. Interest rates vary depending on the need for a particular property loan.
This is the first step to becoming “non-banking,” since there is no intermediary to reduce or control financial flows. The only paid payments are network fees such as gas, and anyone can participate.
DeFi has grown to such an extent that even major media outlets such as the Financial Times have published articles about it.
2019. Ethereum-based DeFi has grown 60 percent and now has a record $ 3 million. ETH, or 2.75 percent. About all captured DeFi DeFi writes defipulse.com.
The total dollar value is also close to a record $ 700 million as more opportunities arise based on cryptographic support and the industry expands.
When Ethereum prices recover, that figure will soon reach a billion dollars. The price of ETH may not rise so quickly as investors will need less to act as collateral.
The only thing that could put a dampener on DeFi growth this year is regulatory pressure and AML/KYC restrictions. At the moment, it is still a very ‘wild west’, just as crypto exchanges were in 2017 before governments wanted to know who had what and where it was going.
WHEN ETH BULLISH?
The current billion-dollar DeFi ecosystem is heavily dependent on Ethereum. Ethereum is the global standard for smart contracts and applications, so it is accepted in the industry.
The problem for investors right now anyway is that ETH prices are at all levels except for those who bought this time three years ago. Then it makes sense to block ETH as a guarantee and earn interest on those who do not want to trade in the two-year bear market.
Ethereum is basically looking for it; The first stage of Serenity will be launched this year, which will also give you a chance to earn a bet.
Prices may recover, as they did in the past, and this billion-dollar DeFi line may not be far behind.