BitOffer Institute：DeFi’s market value crosses $11.5 billion, Ethereum is about to rise by tenfold
The second quarter of 2020 may be a turning point in the development of Ethereum Decentralized Application (DAPP). According to the DAPP Market report released by Dapp.com, in the second quarter of 2020, the cumulative number of active users on DAPP developed based on Ethereum exceeded 1 million in a single quarter, in which DeFi growing the fastest.
On July 21st, DeFi’s total market capitalization passed the $10 billion mark. Furthermore, the capitalization increased to $11.5 billion in two days. Since its release in 2019, DeFi Wallet has been far ahead of other wallets in terms of user usage and growth rates. Following the release of the Compound Liquidity Mine in June, the DeFi Wallet market exploded in user numbers and transactions, the wallet downloads now exceeding 5,000.
In fact, DeFi has caught investors’ attention in a short time is because it has a strong consensus based on Ethereum development. On the other hand, it also solves the pain points of lending and asset management in the digital currency field.
In terms of digital asset lending, aside from DeFi, Aave has recently received a lot of attention from investors as a currency market protocol based on Ethereum. Similar to Compound, the lenders keep assets in pools of shared contracts for liquidity, and borrowers are free to withdraw assets from those pools with unlimited term limits through excess collateral. Variable rates paid to borrowers are calculated based on the availability of borrowed money at a given time, and how much a lender can withdraw depends on the balance of unborrowed assets remaining in each pool of contracts.
Since ETHLend, the peer-to-peer lending platform was closed, Aave’s subscriber growth phenomenal, the outstanding debt * ($33 million), and the assets under management ($275 million) have respectively risen by 93% and 81% in a month. So far, it supports 25 types of asset lending, compared with nine for Compound and six for MakerDAO. As of July 13, the individual borrowers of Aave already surpass Compound.
The reason for Aave’s rapid development is closely related to its fast-iterative products. It successively increased the flash loans, “fixed-rates”, in addition, it has borrowed Uniswap LP shares as collateral. More recently, it has been designing a system called Trust-Line that can be overlaid on top of the Aave protocol to offer a new unsecured product. The idea of an unsecured loan attracted the attention of the capital markets. The Aave team recently announced strategic investments from Framework Ventures and Three Arrows Capital, a significant move that will not only drive Aave’s rapid growth, but also drive the Ethereum price higher.
On July 23rd, the company’s beacon chain client Nimbus officially launched a security review, plus news that Defi’s market value exceeded $11.5 billion and that Aave users surpassed Compound usage, pushing Ethereum up 9 points today. “This is just the beginning for the Ethereum rally,” said BitOffer’s Chief analyst, Lucian. “As the price will climbing more than tenfold in the future, currently it’s the perfect time to invest in Ethereum.”
However, buying BitOffer’s Ethereum ETF Ethereum is better than buying a future, in which profits start at a minimum of three times. Besides, it also includes an intelligent dynamic position reallocation mechanism and the calculation of fund compound interest with the returns of up to 17 times. If Ethereum succeeds in a 10-fold rise, the Ethereum ETF would be up to 170 times. Therefore, if you invest $10,000 now and Ethereum grows tenfold in the future, your ETF assets will become $1.7 million. At that point, you will have truly achieved financial freedom and reached the top of your life.
