- Ethereum hit 7% on Wednesday after hitting a new all-time high of over $ 1,430.
- Directly linked to its explosive growth is the rise of decentralized finance, or projects built on DFI.
- Ethereum users receive more than 4% in annual interest, while traditional banks offer less than 0.5%.
- Sign up here 10 things before our daily newspaper, Opening Bell.
Ethereum dropped 8% Wednesday after shooting $ 1,430 a day earlier, hitting a new all-time high for cryptocurrency, the world’s largest smart contract platform.
The price rose to $ 1,265 around 1150 GMT as the previous day’s record high.
Ethereum, the core cryptocurrency of Ethereum’s blockchain network, has grown 33% year-over-year to reach its latest peak, only a few weeks after its crypto cousin Bitcoin reached a new high near 42,000.
Ethereum’s advantage clearly shows that it has overtaken bitcoin’s 26% rally so far this year in its respective US dollar pairs. Its positive momentum indicates that projects built on decentralized finance, commonly known as DIFI, are building more scalable infrastructure for smart contracts rather than relying on brokerages, exchanges or banks.
According to Samantha Yap founder and CEO at YAP Global, cryptocurrency has always been a lesser known rival for bitcoin to mainstream audiences. But there is an increased awareness and understanding that it shows that it can be adopted gradually as the Defy industry grows.
The world’s second-largest cryptocurrency by market capitalization is a new high hit, indicating the start of DFI “eating traditional finance,” said Hassan-Ting CEO of Diphu Money Lego application Furukombo. He added, “More and more people adopting it signify a great future for the industry, whether people are using ETH to pay for something or to capture the value of the network Be, “he said.
According to DeFi Pulse, more than $ 25 billion worth of crypto assets have been locked into Defy applications built in 2020 on Ethereum. The sector now offers loans, synthetic stocks, interest-earning assets, exchanges, derivatives, options and credit systems.
Read more: The head of active equity in Wells Fargo’s $ 607 billion asset management arm described how he did his job from a call center 29 years ago – and 3 trends that change the investment landscape today
Users of Ethereum are already able to receive more than 4% in annual interest, while traditional banks offer below 0.5% interest, as well as exposure to various derivative products to open public blockchain infrastructure The reason is an underlying global market. Sergey Najarov, co-founder of Chanlink, the world’s largest defi project.
“When you consider DIFI’s 10X increase in market size, banks and DFI Financial Products have a consistently higher rate of return from DFI Financial Products than the inherently global nature, higher inflation and unexpected money printing through traditional With the devaluation of assets. One can begin to see that Defai is where the next flight to security will take place and is actually one of the current forces that are adopting cryptocurrencies like Bitcoin and Ethereum today, “Nazarov. he said.
Read more: GOLDMAN SACHS: Buy these 25 stocks best for juice gains in 2021 as incentives and vaccine advances