DeFi Tokens Outperform Market Because of Adoption, Technology and Sentiment Change: Analyst

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Tue, 06/09/2020 - 14:23
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Vladislav Sopov
Anonymous cryptocurrency analyst Ceteris Paribus has explained to Messari's Qiao Wang, which catalysts have boosted DeFi token prices in Q1-Q2, 2020
DeFi Tokens Outperform Market Because of Adoption, Technology and Sentiment Change: Analyst
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An analyst has highlighted the top beneficiaries of the DeFi segment market capitalization upsurge and revealed some of its possible catalysts.

Altseason? No, DeFi season!

According to Ceteris Paribus, native digital assets of decentralized financial instruments significantly outperform the market in terms of prices. Kyber Network Crystals (KNC), Aave Protocol Tokens (LEND) and Loopring Coin (LRC) have gained more than 300% since June 2019.

DeFi Tokens outperform market
Image via Twitter

The calculations are based on data provided by the Messari and Coingecko analytical sources.

According to the estimations of Ceteris Paribus, all of the ecosystems of DeFi products gained $700M in terms of market capitalization. The mid-caps, i.e. the products with $10M-$30M in capitalization as of the end of 2019, benefit the most from this trend.

Only three projects see their tokens down compared to June 2020, namely, Acropolis, Synthetix and Cred.

Where is the trick?

Angel investor and analyst Qiao Wang asked Ceteris Paribus, which catalysts drive the token performance of DeFi assets. He responded, saying that an increase in the volume of assets under management, mainnet launch announcements and changing token structures contributed to this success.

Also, Ceteris Paribus noticed a switch in sentiment from Layer-1 products (i.e. new blockchains) to Ethereum-based application development. Depressed valuations amid the 2018-2019 bear market and the upsurge in liquidity may be also involved.

Elias Simos, a senior research analyst in Decentralpark, believes that fee-driven DeFi products are used to providing access to Ether flows.

Thus, Ethereum (ETH) works like money in the decentralized world, Mr. Simos concluded.

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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.)