Startups have not forgiven Ethereum for DeFi success

CONTENT

  • Other crypto projects have their own claims for DeFi

  • Competitors want to displace Ethereum from the leading position in the decentralized finance market

  • Startups Use Ethereum Trouble To Seize Power In The DeFi Market

International consortium of news organizations developing transparency standards.

The market for decentralized finance (DeFi) Decentralized finance (DeFi) is a financial services built on blockchain technology that offer users access to open, efficient and … More. Along with it, incomes from projects that are represented in this sector also increase. The opportunity to make money on the active growth of the decentralized finance market led to a dispute between companies for leadership.

Who is currently in charge of DeFi? 

Most DeFi startups operate on the blockchain of the second largest cryptocurrency by capitalization – Ethereum. A side effect of the platform’s popularity among representatives of the decentralized finance sector was the active growth of commissions in its network. The large number of operations and high fees for Ethereum transactions allowed the cryptocurrency miners in August to earn 3 times more colleagues who preferred to focus on mining bitcoins.

Comparison of the cost of transactions on the Ethereum network and Bitcoin. Data: bitinfocharts.com

Against the background of the popularity of projects from the decentralized finance sector, a profitable farming movement has appeared on the digital asset market. Its representatives are focused on earning the maximum amount of cryptocurrency through investments in DeFi protocols. Their activity also affects the rise in transaction prices on the Ethereum network.. 

The project developers, at the time of writing, have not found a solution to the problem of the high cost of operations. Against the background of this situation, representatives of other startups, including Tether, tried to do their part to resolve the situation. It is noteworthy that in the end, the tension eased the fall in the ETH rate. Transactions on the cryptocurrency network fell. However, contrary to expectations, the cost of operations on the coin’s network still remained high compared to other digital assets..

For a long period of time, amid the active growth of DeFi, there was practically no negative news about the decentralized finance market on the network. At the same time, many startups did not differ in high-quality study and showed signs of scam. The lack of information about investors who lost funds due to investment in another project became the reason for jokes from the participants of the crypto community. As a result, criticism hit the DeFi market.

A few days later, against the background of the discussion of another suspicious project, the first significant correction began in the decentralized finance market. The total amount of funds blocked for the needs of DeFi projects went down. At the time of this writing, the indicator is at the level that was first reached on August 29, 2020.

Startups haven't forgiven Ethereum for DeFi success

Data: defipulse.com

Who claims to be Ethereum?

Taking advantage of the fact that Ethereum is unable to cope with the pressure of DeFi and the market correction, representatives of other crypto startups did not miss the opportunity to draw the attention of the crypto community to their blockchains. Representatives of EOS and the digital asset exchange Binance took the chance to drag some of the users of the decentralized finance sector. To attract the attention of crypto farmers, the developers of the trading platform have launched a new service for “growing” assets through cryptocurrency staking.  

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The TRON team is also making attempts to attract project users to its blockchain. Notably, startup founder Justin Sun recently created a DeFi coin named after himself. Despite the activity, in the top 10 projects of the decentralized finance sector there are only two projects that do not work on the Ethereum blockchain..

Data: dappradar.com

As a reminder, it was revealed earlier that the fall of the BTC to $ 10 thousand led to the liquidation of futures for $ 40 million..

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Startups haven't forgiven Ethereum for DeFi success
Startups haven't forgiven Ethereum for DeFi success
Startups haven't forgiven Ethereum for DeFi success

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