According to CoinGecko’s most recent yearly report, DeFi will continue to grow in 2020, with more than $1 billion locked on the Ethereum blockchain. Ethereum’s DeFi is unstoppable, and it’s going to be one serious bumper year. 

What is Ethereum’s DeFi? 

DeFi refers to decentralized applications (dApps) or platforms that enable investors to engage in traditional financial services, only with Ethereum as collateral.

Users can take loans, make payments, trade derivatives, and more, without the need for any centralized entity. The key really is in the name here DeFi stands for Decentralized Finance, and that’s precisely what it is. 

If you’re looking to get in on trading ETH or purchasing ETH to take part in DeFi, check out eToro – the world’s largest social trading platform. 

 

The Report 

According to the report, Etheruem’s DeFi is unstoppable. With interest rate swaps, and decentralized options markets allegedly set to be launched later this year, DeFi is growing every day.

The report also spoke of how the DAI savings rate could be a major contender for adoption as the reference rate in the DeFi ecosystem, like how the London Inter-bank Offered Rate is used in traditional financial markets. 

The report also stated the Decentralized Autonomous Organizations (DAOs), will help the DeFi system reach true decentralization.

It’s expected to be used in various projects like Synthetix and Kyber in the future. While DeFi may not need regulation, it may actually be helped rather than hindered by crypto-friendly regulators – particularly in major cryptocurrency locations. Friendly regulations could actually boost the market in this case. 

CoinGecko‘s co-founder, Bobby Ong, commented in the report, “Total value locked in DeFi apps on the Ethereum blockchain will exceed over $1 billion.” 

He also mentioned that there would be more than 100 DeFi apps by the end of 2020, all of which will likely appear on smart contract platforms. However, he’s well aware of the risks associated, saying, “It would not surprise me if at least 1 DeFi app will get hacked.” However, DeFi insurance and derivative markets will adapt to better tackle these risks.

 

 

Can Ethereum’s Defi go to 1 trillion?

According to Ryan Sean Adams, the founder of Mythos Capital, there is potential for Ethereum to reach a $1 trillion market cap, but it’s all down to DeFi. 

However, the case for a trillion-dollar market cap for Ethereum is still pretty far-fetched. For example, Adams argued that if half of Argentina’s monetary supply transitions to Ethereum, it can create a circulating supply of 13.58 billion DAI.

DAI is a Stablecoin that represents the US dollar on the MakerDAO ecosystem. MakerDAO users can use Ethereum to issue loans or process payments. 

Adams argued, “While 13.58B in circulating Dai seems like a moonshot today, it’s actually just a tiny slice of a potential future for a global, permissionless financial system when you consider traditional capital markets aggregate hundreds of trillions in value.”

However, the likelihood of Ethereum somehow capturing the majority of the monetary supply of an entire country is pretty slim – at least at this point in time. 

Ethereum’s DeFi in 2020 

There’s really no getting around it, Ethereum’s DeFi is unstoppable. With 2020 set to be a very good year for crypto, it’s more than likely that DeFi will continue to grow – and Ethereum with it.

With more products entering the space, DeFi will become increasingly decentralized and pose a real challenge to traditional financial entities.

It offers a solution for crypto users, allowing them to engage with traditional financial services, but in a decentralized manner. Who wouldn’t want to get involved in something like that? 

Right now, Ethereum has a market cap of $18,318,879,805. Although Ryan Adams seems to think that DeFi can get Ethereum to 1 trillion, it seems unlikely at this point in time – and into the foreseeable future.

Realistically, the kinds of solutions that DeFi offers will boost Ethereum, but getting the blockchain to a trillion-dollar valuation sounds far fetched. Either way, DeFi is providing something essential in the crypto space, and it’s only going to get bigger. 

 

Ethereum’s DeFi is Unstoppable 1
About the author

Brent Dixon is the owner of E-Crypto News and an early adopter of cryptocurrencies. He is a Book editor- that has edited numerous books on Cryptocurrencies. He has been a writer for more than 30 years. Covering everything from Jazz Music to Blockchain Technology. He currently lives with his wife on Miami Beach, Fl.

Related Posts

E-Crypto News Executive Interviews



bitcoin
Bitcoin (BTC) $ 43,481.00
ethereum
Ethereum (ETH) $ 3,064.35
cardano
Cardano (ADA) $ 2.22
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 375.37
xrp
XRP (XRP) $ 0.991369
solana
Solana (SOL) $ 147.03
polkadot
Polkadot (DOT) $ 31.26
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.222946
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 43,481.00
ethereumEthereum (ETH)
$ 3,064.35
tetherTether (USDT)
$ 1.00
bitcoin-cashBitcoin Cash (BCH)
$ 541.00
litecoinLitecoin (LTC)
$ 159.84
bitcoinBitcoin (BTC)
37.077,34
ethereumEthereum (ETH)
2.613,05
tetherTether (USDT)
0,852725
bitcoin-cashBitcoin Cash (BCH)
461,32
litecoinLitecoin (LTC)
136,30
bitcoinBitcoin (BTC)
31,760.70
ethereumEthereum (ETH)
2,238.35
tetherTether (USDT)
0.73045
bitcoin-cashBitcoin Cash (BCH)
395.17
litecoinLitecoin (LTC)
116.76

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021
Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021
What Role Do Cryptocurrencies Play In The Era Of Ransomware Attacks?
June 9, 2021

Blockchain/Cryptocurrency Questions and Answers

Beginner’s Guide to Investing in Cryptocurrency
August 9, 2021
Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021
Solana
What Is Solana (SOL) And How Does It Work?
June 26, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin43,499 0.59 % 3.00 % 9.73 %
Ethereum3,063.9 0.44 % 6.65 % 14.79 %
Cardano2.230 0.39 % 8.37 % 10.76 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Binance Coin375.88 0.43 % 5.82 % 12.57 %
XRP0.9920 0.65 % 10.06 % 11.34 %
Solana146.70 0.15 % 12.06 % 7.50 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
USD Coin1.000 0.28 % 0.04 % 0.07 %
Dogecoin0.2231 0.70 % 7.39 % 9.78 %

bitcoin
Bitcoin (BTC) $ 43,481.00
ethereum
Ethereum (ETH) $ 3,064.35
cardano
Cardano (ADA) $ 2.22
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 375.37
xrp
XRP (XRP) $ 0.991369
solana
Solana (SOL) $ 147.03
polkadot
Polkadot (DOT) $ 31.26
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.222946