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

News
Wed, 06/24/2020 - 11:57
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.

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
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.)