Hype around DeFi doesn’t help ETH in any way

Hype around DeFi doesn’t help ETH in any way

THE DEFI HYPE IS REAL !?! Ethereum going parabolic NOW!!!

Contents

Hype around DeFi doesn’t help ETH in any way
CONTENT

  • Ethereum blockchain ecosystem experiences DeFi boom and gains support from fundamental factors.

  • These favorable factors do not affect the ETH rate in any way..

  • A number of optimists continue to believe in the prospects of this cryptocurrency.

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ETH holders are increasingly questioning why the native Ethereum blockchain is not benefiting from the DeFi boom Decentralized Finance (DeFi) – this is financial services, technology-based blockchain that offer users access to open, effective and … More.

The Ethereum blockchain is now highly popular due to the boom in the DeFi token segment created on the basis of this blockchain. Meanwhile, Ethereum (ETH) itself, which is the second largest and most important cryptocurrency, continues to demonstrate very modest success and does not please its owners in any way..

Low volatility, low ambition

The performance and price dynamics of the ETH rate disappoint investors in this currency against the background of successful assets in the segment of decentralized financial services (DeFi).

Hype around DeFi doesn't help ETH in any way

For a technical analysis of long-term prospects for ETH, click here.

The irony of fate is that such DeFi tokens are based on the Ethereum blockchain. However, it seems that ETH, as the host of this ecosystem, does not benefit from this. Moreover, some note that other ERC-20 tokens are gradually replacing the currency from its native network..

The latest statistics from experts of the analytical resource Skew may become another reason for frustration among the bulls on Ethereum. According to their data, the price volatility of ETH is almost identical to the volatility of Bitcoin (BTC). The volatility spread between the two currencies tends to go below zero.

According to Skew, the volatility of the ETH options market is only 2% higher than that of BTC. For comparison, during the Black Thursday panic, the Ethereum (ETH) rate turned out to be 45% more volatile than Bitcoin..

Hype around DeFi doesn't help ETH in any way

This indirectly confirms that ETH is not gaining any benefits as a result of the DeFi boom, although it was this factor that was considered a fundamental difference between the two main competing currencies in the crypto space..

This situation is really puzzling, especially when you consider that the Ethereum ecosystem now has a whole list of positive fundamental characteristics, including, among other things, the prospects for the launch of Ethereum 2.0.

Meanwhile, bitcoin is deprived of many of these advantages, which has already prompted some experts to predict it will lose its leadership position among cryptocurrencies..

Why course ETH cannot strengthen its position in the market in any way, despite the wide popularity of the blockchain Ethereum? Join the discussion in our Telegram channel – and you will find out everything!

The calm before the storm?

However, there are those who continue to believe in a bright future for ETH. So, earlier this month, the well-known investor Dan Tapiero expressed confidence that the currency will catch up and in the 6-12-month perspective it can expect an explosive growth to at least $ 500 against the background of a combination of favorable technical and fundamental factors.

Hype around DeFi doesn't help ETH in any way

Popular cryptocurrency trader and analyst Crypto Michaël (@CryptoMichNL) has a similar opinion. He also shared in June predictions according to which Ethereum could reach the $ 300 area by the end of summer..

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