Majority of the popular DeFi applications are being built on Ethereum.
The popularity of DeFi has resulted in Ethereum reestablishing itself as the number one DApp platform.
4.3 Million ETH is now locked in DeFi platforms, up 800k since mid-July.
The DeFi boom of 2020 has had a positive impact on the Ethereum network in more ways than one. According to the Q2 DeFi 2020 report by DappRadar, the Ethereum ecosystem has been the major beneficiary of the increased interest in Decentralised Finance. The report explains that:
2020 has been the year of DeFi. With the emergence of liquidity mining, the sector has seen a flood of investor and user capital as well as developer interest…
The Ethereum ecosystem has been the main beneficiary of the DeFi wave, but key competitors are now looking to replicate its success on their own network.
The team at DappRadar further concludes that due to DeFi, Ethereum has managed to re-establish itself as the number one Dapp platform in the industry. This is despite the fact that ETH2.0 yet to be fully implemented.
The number two blockchain has re-established itself as the number one dapp platform in the industry. Despite concerns surrounding scalability and skyrocketing transaction costs, Ethereum has been at the center of user and developer activity in DeFi.
Over 4.3 Million ETH and a Total Value of $4.5 Billion is Locked in DeFi
Further checking the progress of the DeFi industry via DeFiPulse.com, it can be observed that over $4.5 Billion in total value is locked in Decentralized Finance.
Of this amount, 4.3 Million ETH is being utilized on these platforms. The latter figure is up by 800,000 ETH since mid-July indicating the continual use of Ethereum to participate in yield farming that is the centerpiece of DeFi.
What Next for Ethereum in the Crypto Markets?
Taking a brief look at the market performance of Ethereum, we find that ETH is currently consolidating between the $365 support zone and the $400 resistance level. With Bitcoin struggling to keep its value above $11,700, the fate of Ethereum rests with the ability of BTC to remain bullish or to experience some form of sideways movement.
As with all analyses of Ethereum, traders and investors are advised to have an eye out for any sudden Bitcoin movements that might affect their ETH positions. Additionally, stop losses and the use of low leverage is advised during uncertain times.