DeFi Markets Will Reach $1 Billion Once Ethereum Prices Recover
The total dollar value is also close to record highs of $700 million as more crypto collateral based options become available and the industry expands. When Ethereum prices recover, that figure will soon reach a billion dollars. The value of ETH may not increase as fast, as investors will need less of it to act as collateral. The only thing that could put a dampener on DeFi growth this year is regulatory pressure and AML/KYC restrictions. At the moment, it is still a very ‘wild west’, just as crypto exchanges were in 2017 before governments wanted to know who had what and where it was going. When ETH Bullish? The potential billion dollar DeFi ecosystem is largely dependent on Ethereum at the moment. Ethereum is the global standard for smart contracts and dapps, which is why it has been adopted for this industry. The problem at the moment, for investors anyway, is that ETH prices are on the floor for all but those who bought this time three years ago. It makes sense then to lock up the ETH as collateral and earn interest on it for those that do not wish to day trade in a two year bear market. Ethereum has a lot going for it fundamentally; the first stage of Serenity will be rolled out this year which will also provide earning potential through staking. Prices could recover as they have done before and that big billion dollar DeFi milestone may not be that far away. Will DeFi markets reach $1bn in 2020? Add your thoughts below.
Images via Shutterstock, Chart by Defi Pulse The post appeared first on Bitcoinist.com.
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