Defi growth on Ethereum ‘parabolic’ sector expands 130% in one year
Defi growth on Ethereum 'parabolic' sector expands 130% in one year
Interest in financial platforms based on Ethereum and other blockchain networks is increasing rapidly. The growth of the entire sector has been around 130% in the last 12 months, with apps based on Ethereum still dominating.
Does DeFi bring ETH awards to the moon?
According DeFi Pulse, a website that tracks the growth of the sector at that time were ether (ETH) and other digital assets worth 305.95 million US dollars in decentralized financial applications in the past year included. Today it’s over $ 700 million.
By far the most popular DeFi application is the “Maker DAO” stablecoin lending project. A total of $ 385 million or 2.4 million ETH are currently tied up in the decentralized Ethereum-based credit platform.
That is significantly less than the all-time high of $ 505 million in June 2019 (due to the price fluctuations at ETH). However, Maker has never been so popular in terms of the actual ether bound to the platform. At present, 2.415 million ETH are tied up in the DeFi app. The platform accounts for a massive 55.41 percent of the entire decentralized financial sector.
Other popular applications include the synthetic derivatives platform Synthetix and the compound loan application. More than $ 132 million and $ 96.5 million are currently stored on these two platforms. Both are based on the Ethereum blockchain, like almost every other popular DeFi application today.
In fact, you have to go down to eighth place in the leaderboard to find a DeFi application outside of the Ethereum network. At $ 7.2 million, Bitcoin’s Lightning Network is the largest decentralized payment platform in the industry.
Despite some positive news for BTC’s micropayments scaling solution, 2019 wasn’t exactly the positive year that many people expected for the Lightning Network.
Although the ETH price fell from its local high in mid-2009 from around $ 351 to just $ 142: Such interest is a clear sign, as the Twitter-based crypto analyst CryptoWolf (@IamCryptoWolf) explains. He describes the development as “parabolic”.
The price of Ethereum’s native digital asset Ether will follow the clear upward trend in the DeFi sector – which makes it easy for him to decide to accumulate ETH.
ETH locked in DeFi going parabolic.
Price will follow, i'm accumulating AF. pic.twitter.com/JjgetnovqN
— CryptoWolf (@IamCryptoWolf) January 8, 2020