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Tether (USDt) Use on Aave DeFi Protocol Skyrockets, Surpassing $7M

News
Thu, 05/28/2020 - 10:34
Vladislav Sopov
The Aave DeFi digital banking protocol has witnessed a huge influx of USDt liquidity used in flash loans and deposits. The net value locked in Aave has broken above $60M
Tether (USDt) Use on Aave DeFi Protocol Skyrockets, Surpassing $7M
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According to a press release shared with U.Today Crypto News, the amount of USDt liquidity on the Aave DeFi protocol has surged. This boosted the adoption of Aave major services, i.e. flash loans and deposits.

Liquidity matters

USDt is the fastest growing stablecoin in DeFi systems. With 7.2M USDt available on the Aave Protocol, it accounts for more than 10.2% of all in-protocol liquidity.

In particular, USDt is in high demand in flash loan services. With flash loans, users can borrow a range of ERC20 tokens without posting collateral to back those loan positions, provided that the loan is returned in the same transaction.

Typically, flash loans are used in high-frequency trading and arbitrage solutions. 

Deposits represent another high-profit opportunity for USDt liquidity users in Aave. USDt, on average, offers depositors a rate of 6.37% APY interest on their USDt without having to give up custody.

Institutional-level growth

Stani Kulechov, CEO of Aave, highlights the crucial importance of USDt in decentralized finances, in particular - for secure deposits by institutions:

No other stablecoin has grown at such a pace as USDt in the DeFi lending market space

The role of USDt in DeFi is also outlined by Paolo Ardoino, CTO at Tether, who calls his product 'the stablecoin of choice across DeFi platforms'.

This upsurge has already resulted in prominent Aave promotion amid top DeFi ecosystems. According to Defipulse, an analytics and rankings hub tracking key metrics for DeFi, Aave, with $69M locked in contracts, holds the fourth position by their metrics.

Also, Aave is the fastest growing protocol of all DeFis built on top of the Ethereum (ETH) blockchain.

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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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
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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.)