• 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 Cryptocurrency news Ethereum

Ethereum 2.0 Is Likely to Boost DeFi Further, Even After Parabolic Rally

Nick Chong by Nick Chong
8 months ago
in Ethereum
Reading Time: 2min read
bitcoin price
Advertisement

One of the hottest crypto trends over recent months has been Ethereum DeFi. Also known as decentralized finance, DeFi is the industry of building decentralized applications for financial services.

As can be seen below, coins related to this sector have gone parabolic, outpacing Ethereum. Take the example of Aave’s LEND token, which is up by over 700% since the middle of April.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!
Chart of Ethereum vs. top DeFi altcoins (Compound, Chainlink, Ren, Synthetix Network Token, and Aave's LEND) over the past three-four months. Chart from TradingView.com

According to a prominent executive in the space, DeFi is likely to be boosted even further once Ethereum 2.0 goes live.

Related Reading: Once-a-Cycle Bitcoin Bull Signal Just Appeared for the 1st Time Since 2016

How Ethereum 2.0 Could Boost DeFi

Ethereum 2.0 is slated to implement what is known as “staking.” In layman’s terms, staking allows one to allocate their holdings of a cryptocurrency to the governance of a network, then earn rewards as a result.

Some in the DeFi space have postulated that the upgrade will decimate DeFi. After all, the primary use case of many DeFi applications at the moment is to provide yield on top of one’s cryptocurrency.

According to Marc Zeller, CEO of a top DeFi protocol Aave, this may not be the case.

Writing to Aave’s community on Telegram, Zeller wrote on July 11th that “if anything, ETH2 phase 0 will multiply the supply rate of ETH.” The term “supply rate” is used to describe how much of a cryptocurrency is deposited into a DeFi protocol.

My hot take on ETH2 and the #Defi ecosystem.

Not a threat, an opportunity. pic.twitter.com/5WkAbWh918

— Marc 'aUSDC is Money' Zeller (@lemiscate) July 11, 2020

As to why he thinks this is the case, Zeller said that many will be hesitant to deposit their money into Ethereum 2.0 staking. But, there will still be some looking to stake their cryptocurrency, pushing rates higher on DeFi platforms as borrowing activity increases:

“Markets love equilibrium so you will end up with a small discount between ETH supply rate on Aave and the staking yield on ETH2. So my take is that ETH2 will grow DeFi instead of being a threat.”

May Be Delayed?

Unfortunately for DeFi and Ethereum bulls, there’s been some recent talk of the upgrade being pushed back.

Justin Drake, a researcher at the Ethereum Foundation, said that he personally doesn’t think it’s viable for the upgrade to go live this year. This comes in spite of the initial goals of many developers to roll out the upgrade in Q3 2020.

“All the above cannot happen in Q3 2020. With Thanksgiving on November 26 and the December holidays I’d say the latest practical opportunity for genesis in 2020 is mid-November, 4 months from now. As such, I’m now inclined to say that the earliest practical date for genesis is something like January 3, 2021 (Bitcoin’s 12th anniversary).”

Yet, Ethereum founder Vitalik Buterin has politely disagreed with the sentiment, as have others.

Related Reading: This Unexpected Metric Shows That Crypto Is in a Booming Bull Market
Featured Image from Shutterstock
Price tags: ethusd
Charts from TradingView.com
ETH  2.0 Is Likely to Boost DeFi Further, Even After Parabolic Rally
Tags: DeFiethereumethusdtechnology
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

Ethereum, ETHUSD, ETHBTC, ETHUSDT, cryptocurrency

Ethereum Flips Strong Resistance Levels as Price Eyes $2,000-Retest

7 hours ago
Ethereum, ETHUSD, ETHBTC, ETHUSDT, cryptocurrency

2 Reasons Why Ethereum Could Reclaim Record Highs Above $2,000

1 week ago
Ethereum (ETH/USD) Falls 26% From Historic High; What’s Next?

Ethereum (ETH/USD) Falls 26% From Historic High; What’s Next?

1 week ago
Ethereum

Analyst Explains Why Ethereum (ETH) Could Hit $5,000 in 2021

2 weeks ago
Ethereum Triangle Breakout Shifts Price Target to Over $2,000

Ethereum Triangle Breakout Shifts Price Target to Over $2,000

4 weeks ago
Ethereum, ETHUSD, ETHBTC, ETHUSDT, cryptocurrency

Ethereum Nears All-Time High Despite Alarming Bearish Signals

4 weeks 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

First-Ever Public Tron-based Smart Contract

March 3, 2021

ECOMI to List OMI Tokens with BitMax

March 3, 2021

eToro and DS TECHEETAH Change Face of Sponsorship With Unique Profit Only Deal

March 2, 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.