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DeFi Growth Correlation with Bitcoin (BTC) and Ethereum (ETH) Price Explained by Top Analysts

News
Fri, 06/19/2020 - 11:47
Vladislav Sopov
Decentralized financial instruments, or DeFi, may be the next big thing in the cryptocurrency realm. Traders are guessing whether investing in DeFi assets is a smart bet
DeFi Growth Correlation with Bitcoin (BTC) and Ethereum (ETH) Price Explained by Top Analysts
Cover image via stock.adobe.com
Contents

Blockchain researcher Chris Burniske, who has authored a majority of the token evaluation models, explained why we should avoid a Bitcoin (BTC) obsession and whether the DeFi segment is worth taking a look at.

Bitcoin (BTC) is great, but DeFi is just getting started

Mr. Burniske commented on the calculations of a trader who highlighted the insane mid-term performance of DeFi instrument native assets. Aave Protocol (LEND), Kyber Network (KNC), Loopring (LRC), Bancor (BNT), Maker DAO (MKR) and Melon Protocol (MLN) were mentioned; every asset demonstrated triple-digit gains over the past year.

DeFi tokens performed well in both mid-term and long-term perspective
Image via Twitter

The trader admitted that he was disappointed in the pale performance of Bitcoin (BTC) and started feeling FOMO for the upcoming DeFi asset run.

Mr. Burniske announced that Bitcoin (BTC) is still great, but it should be estimated without obsession. And, in general, he agreed about the prospects for DeFi assets. 

Chris Burniske believes that this segment is in the nascent stage and the brightest days of its performance are still ahead. He claims that we shouldn't miss this lucrative investment opportunity as he:

Would hate for those who’ve been here the whole time to miss the boat

Much more natural catalyst than ICOs

It appears that these estimations resonate perfectly with the words of Three Arrows Capital CEO Su Zhu, who is also the author of the Deribit Insights series.

Mr. Zhu, who masterfully predicted the Bitcoin (BTC) performance after the last bearish attempt to push it below $9,000, noticed two differences between the influence of ICO euphoria on the Ethereum (ETH) price and the possible effect DeFi growth has on it.

He emphasized that the decentralized finances sector is accretive and sustainable at the same time. ICOs totally lacked both characteristics. 

But the common narrative still underestimates the power of DeFi and its huge possible influence on Ethereum (ETH) price movements, Mr. Zhu admits.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director

News
Mon, 07/13/2020 - 14:38
Vladislav Sopov
John Lilic, managing director at ConsenSys decentralized development studio, has shared an over-bullish prediction for Ethereum (ETH) progress
Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director
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Contents

John Lilic leads international business development in the ConsenSys leading blockchain development studio. He is also an expert in energy markets and cryptocurrency segments. He tracked the progress of Bitcoin's (BTC) and Ethereum's (ETH) market capitalization statistics, coming up with an extravagant prediction.

Bitcoin (BTC) should get ready for parity

Mr. Lilic outlined that Ethereum (ETH) is showcasing much healthier dynamics than its competitor is. For instance, the flagship cryptocurrency still surpasses Ethereum (ETH) by 6.3x in terms of market capitalization, while simultaneously collecting 20% fewer fees than Ethereum (ETH).

John Lilic of ConSensys foresees parity of Bitcoin (BTC) and Ethereum (ETH) market capitalizations
Image via Twitter

Also, Ethereum (ETH) is demonstrating much more impressive price dynamics this year. It gained almost 37% against Bitcoin (BTC) in 2020. That said, Ethereum (ETH) looks severely undervalued to the top manager of ConsenSys.

However, Ether is on the path to eliminating this discrepancy. Eventually, the top two cryptocurrencies may reach market capitalization parity, concludes Mr. Lilic.

Related Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains
Related
Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains

As covered by U.Today Crypto News recently, Coinmetrics on-chain research team called Bitcoin (BTC) and Ethereum (ETH) the unique crypto behemoths that have managed to recover from Black Thursday.

Bitcoin (BTC) is losing supremacy in "fee race"

Should Ethereum (ETH) overcome its undervaluation, its price may be over $1,550 based on liquid supply and current Bitcoin (BTC) market capitalization.

Recently, it was unveiled that Ethereum (ETH) blockchain continues to surpass Bitcoin (BTC) in terms of network fees for more than 30 days in a row. Ethereum (ETH) is seeing this advantage for the first time in its history.

As U.Today Crypto News reported previously, ex-Messari analyst and angel investor Qiao Wang identifies two main catalysts of Ethereum's (ETH) price run in the mid-term perspective.

Related Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang
Related
Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang

According to Wang, the upcoming rally may be fueled by a long-awaited transition to Proof of Stake and fixing the monetary policy of Ether token.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)