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

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Fri, 06/19/2020 - 11:47
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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
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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
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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.

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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.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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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.)