It was only a few days ago that we reported that cryptocurrencies worth more than $ 3 billion USD are now housed in DeFi applications. Today, that value broke the $ 4 billion mark. The pace at which the DeFi market is increasing is almost unnatural. Meanwhile, Ethereum (ETH) almost reaches the $ 300 USD.
DeFi hype is unstoppable
The development and enormous growth of decentralized finances cannot be stopped. After we passed the $ 3 billion USD mark just four days ago had reported, the DeFi-held investment market is now reaching the $ 4 billion mark. For comparison, the $ 2 billion to $ 3 billion increase took two weeks. According to Defipulse, the DeFi market took more than 2,5 years to reach a billion USD at all.
As DeFi Pulse data shows, $ 4,08 billion is currently in DeFi applications. The market continues to be dominated by Maker (MKR) with a share of 21,06% and assets worth $ 860 million. Places 2 and 3 each occupy Aave (LEND) and Compound (COMP).
Ethereum is heading for the $ 300 USD
The market for DeFi applications primarily benefits one cryptocurrency: Ethereum (ETH). The majority, if not almost all, of DeFi applications are based on the Ethereum blockchain and are therefore ERC-20 tokens. The fees for ETH transactions continue to rise, but this does not prevent investors from participating in the hype.
This not only increases the prices of DeFi projects, but also the price of the second largest cryptocurrency in the world can record gains. The ETH course has increased by more than 26% in the last seven days.
Due to the current increase, the Ethereum price is quoted at $ 290 USD. The Ethereum price was last able to reach this value on February 15, 2020, as the following chart shows:
For many, the current development is the first sign of an impending increase, as last seen at the ICOs' wedding in 2017. The cryptocurrencies of some DeFi projects already give a first taste of this, with increases of several hundred percent. One of these cryptocurrencies is Compound (COMP), which rose briefly by more than 200%:
Markus from Kryptokumpel.de
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