• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Buy SilverTry
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Buy SilverTry
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Technical analysis DeFi

Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Nick Chong by Nick Chong
5 months ago
in DeFi
Reading Time: 3min read
Here’s Why Ethereum’s DeFi Market May Be Near A Bottom
Advertisement

It’s been an extremely poor month for the Ethereum decentralized finance (DeFi) space. Leading coins pertaining to this fledgling space have shed dozens of percent from their all-time highs, set either in August or in early September.

Take the example of Yearn.finance (YFI), which has dropped from its all-time high of $44,000 to $14,000 as of this article’s writing. Surprisingly, it actually isn’t the worst-performing DeFi: Curve DAO Token has dropped over 95% from its all-time high.

While it fears that the worst is yet to come for some holders, certain segments of the market are coming to a realization that a bottom is likely near for this space. This positive sentiment is somewhat predicated on the fact that the fundamentals of the DeFi space are stronger than ever.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!
Related Reading: Ethereum Transaction Fees Surge to All-Time Highs After Uniswap Launch

Ethereum DeFi Likely Nearing a Bottom, Analysts Say

The Ethereum DeFi market is likely nearing a bottom after most popular tokens have dropped by upwards of 60-70%, analysts say.

Alex Krüger, an economist and market analyst closely following Bitcoin and DeFi, recently noted that DeFi coins have emulated the 2018 ICO market. This is relevant because he notes that unlike ICOs, these decentralized finance coins have positive fundamentals that should mean they’re likely long-term undervalued at current levels:

“In 2018 many ICO tokens experienced a 95% crash in the span of a year. In 2020 some DeFi tokens expeienced a 95% crash in the span of a month. Most 2018 ICOs were scams. Many of these 2020 DeFi tokens are actually good projects that unfortunately were bought up too fast in a rabid frenzy. Market is likely close to its bottom and should experience a bull run in 2021, along with bitcoin.”

Image

Chart of SUSHI's price action since the start of September with analysis by Alex Kruger. Chart from TradingView.com
Related Reading: Critical On-Chain Signal Predicts That Bitcoin’s Next Move Will Be Upward

Strong Fundamental Trends To Drive Further Growth

Showing that DeFi is still fundamentally bullish, MetaMask, a leading Ethereum-focused wallet, announced that it has surpassed one million monthly active users. This is 300 higher than seen a year ago:

“Additionally, over the last twelve months, significant growth in the adoption of DAOs, Web3 games and the rapid consumer uptake of DeFi products and services has further accelerated our growth curve. It’s not just the ability to buy and store Eth that’s powering our new phase of growth. When you think about it, people don’t really want a wallet. They want to invest, sell, lend, borrow. They want to use sites like Uniswap, Yearn, Curve, Maker and Aave to get that job done. MetaMask is simply the connective tissue.”

Santiago R Santos, a partner at crypto fund ParaFi Capital, recently mentioned this fact along with others to suggest that Ethereum’s DeFi space will see further growth.

Other factors he mentioned include the strong uptick in U.S. dollar stablecoin supply and the rapid development of layer-two scaling solutions.

Related Reading: MicroStrategy’s Stock Continues to Soar After BTC Purchase
Photo by Jonny Caspari on Unsplash
Price tags: ethusd, ethbtc
Charts from TradingView.com
Here's Why Ethereum's DeFi Market May Be Near A Bottom
Tags: ethbtcethusd
TweetShare
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

Uniswap (UNI), Compound (COMP), Other DeFi Coins Are Slipping Lower

Uniswap (UNI), Compound (COMP), Other DeFi Coins Are Slipping Lower

2 weeks ago
defi bitcoin crypto wheel of fortune

Millions Learn About DeFi From Wheel Of Fortune Contestant

1 month ago
SushiSwap (SUSHI) Undergoes 10% Rally Despite Ethereum Drop

SushiSwap (SUSHI) Undergoes 10% Rally Despite Ethereum Drop

2 months ago
Bitcoin Altcoins

Compound (COMP) Outruns Top DeFi Tokens as TVL Closes Above $2B

2 months ago
bitcoin defi ethereum

Analyst: Post Bitcoin, Traditional Finance Will Flock To DeFi, Not Ethereum

2 months ago
Ethereum

Synthetix (SNX) Gains 4% Despite Strong Drop in Ethereum Price

2 months ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

Casino Betting Coin launches $FUN Uniswap pool

March 4, 2021

Silicon Valley-Based Taraxa Wants to Put Every Informal Transaction on the Record, Unveils Details About the Upcoming Public Sale

March 4, 2021

Get Ready for the Worldwide Grand Launching of Bulltron

March 4, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Buy Silver

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.