How Ethereum Could Fuel a Trillion Dollar Finance Market

How Ethereum Could Fuel a Trillion Dollar Finance Market

According to Ryan Sean Adam, who publishes a newsletter called bankless, projects like MakerDAO and Compound are leveraging Ethereum’s permissionless financial infrastructure to create a new paradigm for global finance. “Ether is trustless value supplying economic bandwidth for Ethereum’s permissionless money protocols.” These money protocols are consuming more and more of Ethereum’s economic bandwidth and they’re currently at record levels. In 2017/18 Ether was used to fuel an ICO frenzy, in 2019/20 and beyond it is being used as the foundation for global decentralized finance and this is only the beginning. Despite a declining price of Ether throughout 2019, which actually ended the year lower than it began, the amount of ETH locked in DeFi has continued to rise. Growth of DeFi Products In terms of various DeFi projects and services, things really took off in the middle of 2019. Before then the ecosystem was dominated by MakerDAO. Other lending protocols, derivatives, decentralized exchanges, and DeFi products, in general, are now entering the scene and makeup almost a third of the total. Chart from Bankless. Another permissionless money protocol called Synthetix has also exploded on the scene recently. It is a permissionless synthetic asset issuance protocol built on Ethereum which has aggregated over $160 million in total value locked so far. This is only the tip of the digital iceberg so when Ethereum’s market capitalization grows from its current level of around $18 billion it will have the potential to collateralize new financial assets as DeFi markets grow. The future of internet money has Ethereum as its foundations and a trillion-dollar market is inevitable. Will Ethereum-fueled DeFi markets reach a billion dollars this year? Add your thoughts below.

Images via Shutterstock, DeFi Pulse, Bankless The post appeared first on


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