Ethereum’s Best Use Case Goes Parabolic, DeFi Users Double in 6 Months

Tony "The Bull" Severino

5 years ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The use case that helped power Ethereum‘s record-setting string of positive weekly closes in early 2020, has now gone parabolic.

Decentralized finance users have grown from just 90,000 individuals to over 178,000 over the course of the last six months, showing a rapid increase in demand for such alternatives to traditional finance options.

Gone Parabolic: Ethereum DeFi Users Grow From 90K to Under 180K in Six Months

The proliferation of decentralized finance products and applications has grown substantially since the end of 2019. Around that time, buzz surrounding the alternative to traditional finance pushed Etheruem to set a record for the longest string of consecutive green weekly closes in the asset’s short history.

All signs had been pointing to an upside breakout for altcoins and even Bitcoin, but Black Thursday and the pandemic go in the way and caused a massive market collapse.

No amount of DeFi-driven FOMO could prevent the downside experienced that fateful day that rocked financial markets. An over 68% fall from highs set in February 2020 set the second-ranked cryptocurrency back weeks of growth.

While Ethereum prices plummeted, the asset’s most important use case went parabolic, growing nearly double in userbase, from 90,000 five months ago, to 178,000 now.

#5: There are now 178k #DeFi users, up from 90k only 5 months ago — a sign that Ethereum's biggest use case is starting to go parabolic? pic.twitter.com/tocrYB37KT

— Spencer Noon 🕛 (@spencernoon) May 26, 2020

Can Decentralized Finance and ETH 2.0 Help the Top Altcoin Recover?

DeFi helped drive Ethereum prices higher in early 2020, and may still end up providing bullish momentum in the smart-contract focused altcoin once key resistance finally breaks.

In early 2020, a powerful rally helped the asset grow over 100% over the course of a nine-week rally. And while that initial momentum may have worn off for now, when combined with the hype surrounding Ethereum’s upcoming ETH 2.0 update, it could provide enough buy pressure to finally help the cryptocurrency regain gains lost as the crypto hype bubble fizzled out.

In early 2018, fueled by the ICO boom and Bitcoin’s meteoric rise into the public eye, Ethereum reached prices of over $1,400 per ETH token. At the bottom, prices reached as low as $80, representing an over 90% fall from grace.

Ethereum not only has much to recover in terms of USD value, but the altcoin and the rest of its crypto-asset cousins have underperformed against Bitcoin. This trend is set to continue, according to signals on both the ETHBTC trading pair and Bitcoin dominance.

Ethereum’s failure to launch, for now, is a signal that altcoin season is already over, and Bitcoin will likely steal the limelight further. At least until closer to ETH 2.0, when DeFi users will likely hit yet another major milestone, possibly providing the fuel to finally push higher.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.