Ethereum smart contract trading volume is back to 2017 levels according to confirmation Tweeter November 20. Accompanying the swell is the expansion of the ETH price above $ 500. For the first time in two years, bulls have topped the psychological round number, printing new highs in 2020.
The start of a price rally?
Analysts are optimistic about the current rally. Pinning the growing demand on the rise of decentralized finance, other factors that could explain the rise in Ether prices over the past two weeks are the developments around Eth2 and when the transition will be timely. .
According to Challenge Pulse, a site that tracks the number of coins under management by different open finance applications, more than $ 14 billion in assets have been locked in.
That’s a 13X in less than a year since the milestone surpassed $ 1 billion in mid-February. Then, as the price of ETH climbed back up to $ 370, the assets entering DeFi rose sharply, indicating shifting demand and dynamics.
ICOs have collapsed
Unlike the hysteria sparked by the ICO of late 2017 when crypto prices hit all-time highs, Ethereum tokens are finding increasing utility beyond price speculation. Amid the influx of projects offering ideas without a minimum of a viable product but a white paper, investors have soared, sinking millions of dollars.
However, as regulators have proven over the past few months, most projects that brought in millions ended up being scams forcing intervention from government authorities. ICOs and similar crowdfunding were later banned in China and South Korea.
In addition, the promoters of these projects, now classified as securities, have since been sanctioned by the Securities and Exchange Commission (SEC) of the United States while a majority have closed shop.
DeFi is revolutionary
The implementation of finance without trust has been revolutionary. In a recent interview, United States Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert said he was impressed with Ethereum.
DeFi, in his opinion, is revolutionary and could help stabilize the world economy in times of crisis. By disseminating the number of assets under the control of large banks, risks are decentralized and then mitigated.
“The whole idea of DeFi is, number one, it’s revolutionary, and I think that ultimately it could lead to massive disintermediation of the financial system and traditional players. It could even potentially reduce systemic risk in some ways, as we don’t have the financial system concentrated in these large, systemically important institutions globally.
As BTCManager reported, Eth2 can still launch on November 24 despite the low rewards. Even so, a postponement is very likely.
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