Weiss Crypto Analysts Call DeFi Hype 'Mini Bubble' That Won't Hurt Ecosystem

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Wed, 06/24/2020 - 11:57
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Vladislav Sopov
The ongoing DeFi euphoria raises a lot of concerns among analysts and investors. Well-known Weiss Crypto Ratings team claims there's nothing to worry about
Weiss Crypto Analysts Call DeFi Hype 'Mini Bubble' That Won't Hurt Ecosystem
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Weiss Crypto Ratings, an analytics agency working in cryptocurrency and classic asset rankings, has revealed its evaluation of the hype around decentralized financial applications and their tokens.

Mini bubble

According to the experts, this hype should be treated as a 'mini bubble' rather than a 'bubble'. This process won't hurt the progress of the crypto and blockchain segment at all. The euphoria around investments in initial coin offerings (ICOs) that excited tokenholders in 2017 was provided by way of example.

Weiss Crypto Rankings calls DeFi hype 'mini bubble'
Image via Twitter

Experts remembered that 'ICO mania' didn't hurt the industry in 2017. Furthermore, a lot of great cryptocurrency products became popular during this period. Actually, there is a couple of projects from the ICO era that are live and valuable now, i.e. the Cardano (ADA) blockchain platform and Bancor (BNT) liquidity protocol.

However, there is one group of market participants who shouldn't get too excited about investing in DeFi assets. Newbie traders may get hurt, and this is the essence of the majority of bubbles.

Weiss Crypto Ratings admitted that

the only thing bubbles do is make inexperienced traders lose their shirt

Will DeFi bubble surpass ICO mania?

The competition between ICO and DeFi in terms of impact on the industry, on the Ethereum (ETH) price and the overall cryptocurrency market capitalization is widely discussed by experts in the community.

Seasoned researcher, ex-Messari Qiao Wang foresees that DeFi assets may push some crypto behemoths out of Top-10 crypto market caps. According to him, XRP, Litecoin (LTC) and Bitcoin SV (BSV) might leave the elite club.

Three Arrows Capital CEO/CIO Su Zhu predicts that interest in DeFi will be a much more powerful catalyst for the Ethereum (ETH) price than ICO mania was. The investor insists that the decentralized finance sector is both accretive and sustainable at the same time while coin offerings completely lacked both characteristics.

The majority of community members are still very far from understanding the power of the DeFi rise and its potential influence on top blockchain ecosystems, Mr. Zhu added.

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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.)