Despite low rates, the future of Ethereum looks positive
Ethereum has been in development over the course of the year 2019 is not a strong course, like Bitcoin taken. However, Ethereum has recorded a steady increase in user activity. Supported by the strong growth of the decentralised financial movement (DeFi) expect a lot of analysts, that the ETH could take place in 2020 strong development.
According to Joseph Lubin, co-founder of ConsenSys, which is considered the largest Blockchain-developer of Ethereum, the fundamentals of Ethereum strong. According to Lubin were created since 2019, more than 20 million Ethereum accounts, $ 650 million in DeFi-projects locked and 4.5 million ETH from Block Rewards issued. The growth of the DeFi, has influenced the increase in the user activity of Ethereum in the last few months directly. The ConsenSys Team, said:
The amount of Ether that is enclosed in DeFi, has increased over the past year, dramatically, and stood recently at about $ 650 million. Ether has become the Go-to-Collateral Asset for DeFi platforms and applications.
The vast majority of the DeFi user is using ETH as a security to realize a variety of financial activities of credit and derivatives, through to payments, as well as decentralized exchanges (DEXs). In the medium to long term, the efforts of the Ethereum developers for improved scalability of the network could increase the practicality of DeFi-related services.
With the increase in the number of active decentralized applications (dApps), however, we must improve the infrastructure of ETH, both on-chain and off-chain, in order to support the emergence of new applications.
Both the Core developer of Ethereum, as well as free developers are currently trying to the network to make scalable, in order to create an efficient Ecosystem. ConsenSys, for example, said in its report that it plans to put a Million developers in the Ethereum Ecosystem. Various studies have shown that the developer activity can be an indicator for the price development of a crypto-currency. The ConsenSys Team said:
ConsenSys has started an Initiative to bring 1 Million developers in the Ethereum Ecosystem. This year, much more efforts have been made to analyze developers ‘ Communities. In mid-2019 published Electric Capital a report that shows that the community of developers of Ethereum is four times as large, as every other crypto-Ecosystem.
The main criticism of the developers of competing Blockchain projects on Ethereum, however, is often the struggle that takes place in the Ethereum Community to solve a certain Problem. This is certainly also due to the size of the Ethereum developer community, which is a great advantage, but on the other hand, is a negative factor because of the many different opinions in the implementation of important solutions for scaling the network.
Ether (ETH) in Defined projects is increasing rapidly
The amount of Ethereum, which is bound in the Decentralized Finance (DeFi), has reached according to one of the most explosive months in the history of an all-time high. More than a Million Ether (146 million dollars) was paid in the last four weeks in DeFi-projects, which has increased the total amount to 2.7 million ETH, so the data of the Defined Pulse.
MakerDAO, the decentralized lending platform behind DAI, has played in this strong increase in a key role. Alone MakerDAO has called for since the middle of November of 500,000 ETH in deposits and now holds almost half of the ETH in Defined projects.
In the long term, the use of ETH in DeFi for the Ether price will, therefore, play an important role. Not for nothing, the DeFi is referred to as a “Killer”application for Ethereum and as a catalyst for the recovery of the ETH price.
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