Ethereum indicator grows exponentially - DeFi users double within 5 months
After the peak of the crypto-bull run in 2017 and the beginning of 2018, much has happened both in terms of prices and fundamentally in most cryptocurrencies. At Ethereum, for example, the hype at the time was largely triggered by its use for ICOs. In the meantime, ICOs are no longer in such high demand and accordingly, this use case for Ethereum is fading. But what benefits does the smart contract platform currently offer and what could trigger the next hype?
The most promising candidates are not only Ethereum 2.0 and the Serenity Updates, but also Decentralized Finance (short: DeFi). While we have often reported that the value of the ETH locked into DeFi applications has continued to rise, we have seen an even more interesting development in user numbers in recent months. These have shown a remarkable development in the last 5 months.
More and more people use DeFi on Ethereum
The reason for the existence of each coin is its usecase. In addition, the bigger this use case, the greater the potential increase in value of the coin. The question is, what is the current use case at ETH?
Judging by the share price, the market may not be so sure at the moment. The all-time high at the time, triggered by the ICO boom, was over USD 1,400. Ethereum is still a long way from that, with a current price of just over 200 USD. But ETH fans might now see a light at the end of the tunnel.
As Spencer Noon, the Head of DTC Capital, posted a crypto investment fund on Twitter, the number of users of the DeFi applications on Ethereum is currently experiencing parabolic growth.
In the last 5 months alone, since the end of 2019, this number has almost doubled from 90,000 to 178,000. Overall, we can see an even greater growth from a few thousand to almost 180,000 users in the last 2 years, as shown in the chart.
Stablecoins on ETH explode
But that is not enough. Ethereum has another usecase besides DeFi, which has exploded in the last months. It is based on the issuance of Stablecoins, a token linked to a fiat currency.
Spencer Noon notes in his above post that more than 7 billion USD of Stablecoins have been issued on Ethereum. 4 billion of them in the last 3 months alone. In his opinion this shows the high demand for "Crypto-Dollars".
In line with this trend, we have seen ripple (XRP) and the tether flipping in recent weeks, with the most popular Stablecoin overtaking XRP in terms of market capitalization.
In summary, we can therefore say that Ethereum has clear applications that have become increasingly popular, especially in recent months. It only remains to be seen whether and when this development will be reflected in the Ethereum share price. At the moment there is still little to be seen of this. One assumption would be that the switch to ETH 2.0 is causing uncertainty among investors. Nevertheless, ETH is the most popular choice for a crypto-buy along with BTC.
Posted from Crypto Mastermind Go to the original article
