353
140 shares, 353 points

The spring of 2021 is largely marked by Bitcoin’s impressive price action, ETH’s rise to a target price of $ 3,000, and DeFi’s rally.

Since April 2021, over 950,000 Ethereum has moved from top centralized exchanges. At the same time, the percentage of Ethereum in circulation now locked in DeFi protocols has increased from 8.5% to about 10%. This could mark the beginning of the supply continuation that may emerge in the summer of 2021.

Increasing Interest in DeFi Projects

While hedge funds took time to warm up to ETH, interest in DeFi projects increased. ETH loans make up a high percentage of institutions’ credit ledgers, but investment flows are back again this season from ETH to DeFi.

In addition, it’s exciting that Ethereum’s innovative ideas and scaling solutions are rapidly building. The excitement continues, especially as DeFi projects have high demand and a large number of unique users. In fact, quite a few DeFi projects have been created to increase trades and solve scaling issues in the ETH network, helping traders take long positions in ETH.

Projects such as MATIC, Polygon’s layer 2 solution, contributed to increased TVL due to increased market value and price increase. Thanks to Polygon’s collaboration with ETH, there are the best DeFi projects built on the ETH network, such as AAVE and CRV. This is not a challenge as ETH has users and demands due to its technical development and updates.

Moreover, DeFi teams have expanded from ETH to other EVM compatible chains such as Polygon, and there are projects that started in BSC before switching to ETH instead.

Depending on how the L1, L2 ecosystems of the market are performing, top projects such as SOL, MATIC, FTM and AVAX all led the rally in Spring 2021. The train reversal in DeFi is all about scaling ETH. Traders create consistent demand across exchanges and buy dips until the volatility of ETH is high enough to support a price surge to the $ 3,000 level.

Finally, L2 solutions protected whales and institutions from high wage drops. This has supported the rising market value of ETH. At the time of writing, ETH’s market value is just over $ 330 billion. The price remained below the $ 3,000 level, despite the fluctuation this spring. Traders predict that this could change in the summer of 2021.


Like it? Share with your friends!

353
140 shares, 353 points

What's Your Reaction?

hate hate
981
hate
confused confused
490
confused
fail fail
122
fail
fun fun
1226
fun
geeky geeky
1104
geeky
love love
736
love
lol lol
858
lol
omg omg
490
omg
win win
122
win

0 Comments

Your email address will not be published. Required fields are marked *

Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format