Ethereum's DeFi tokens are rapidly outpacing Bitcoin

[Whited35 15285]

The report is originally published on Decrypt which suggests 10 Ethereum's DeFi Tokens associated with different DeFi applications have massive gains(up to 804%) to outperform the broader crypto market in the past three months. They grew more than Bitcoin which is itself incredible to see. The report has created an earthquake in the crypto community during these past three days. Tokens associated with lending and liquidity protocols like  Aave’s LEND token( Native Token from Aave lending protocol which has 804% growth) and  Bancor (BNT) ( Bancor is an Ethereum-based protocol which enables pooled liquidity)  are the best performers. 
Have a look at the following data where you can clearly see 10 DeFi tokens have been gaining growth between 41% and 804% since April 8.

Image:-Messari

So guys, what do you think why DeFi platforms and DeFi tokens are grabbing more attention of investors in the crypto world? Clearly, there is a massive gain for some tokens, is it sustainable? 

 

References:-

• https://defipulse.com/
• https://decrypt.co/34942/ethereums-defi-tokens-are-rapidly-outpacing-bitcoin

[BTC Future 3946]

Defi seems to be sustainable as they have liquidation options. There is risk involved as price of the altcoins people invest can go down a lot, making profits from yield farming dissappear. Besides this, there have been many bugs and exploits that drained pools. Some of these funds were covered by the projects but we don't know if this will be the case if they get hacked for a large sum. 

Anyway you have to risk funds for a long time. And I don't see a way to earn with Bitcoin. You have to buy other assets instead.

[Whited35 15285]

1 hour ago, BTC Future said:

Defi seems to be sustainable as they have liquidation options. There is risk involved as price of the altcoins people invest can go down a lot, making profits from yield farming dissappear.

@BTC Future Really, I can not reject the fact that there will be risks on DeFi platforms. Have a look at this, ETH and BTC with value over 2 billion has already found its direction towards DeFi protocols which is really not normal, I believe this generation is seeking the full financial freedoms even in the crypto world that's why DeFi platforms are becoming more popular one after another. LEND tokens from Aave lending protocols have grabbed my more attentions so I am checking it carefully to sort out more technical details associated with it because it has just exploded with more than 804% growth. As you have said at the end of your post, I am also seeking the way to get benefits from other DeFi tokens not only from Bitccoin or ETH .

[BTC Future 3946]

51 minutes ago, Whited35 said:

As you have said at the end of your post, I am also seeking the way to get benefits from other DeFi tokens not only from Bitccoin or ETH .

@Whited35Basically I haven't seen Defi accepting anything else besides ERC20. They make a WBTC token to wrap BTC and use this instead. Anyway the whole procedure usually demands fees as well. I advise if you plan to invest low amounts, to do that after midnight in Europe. You save fees this way as gas prices are almost half during these hours.

[Whited35 15285]

26 minutes ago, BTC Future said:

@Whited35Basically I haven't seen Defi accepting anything else besides ERC20. They make a WBTC token to wrap BTC and use this instead. Anyway the whole procedure usually demands fees as well. I advise if you plan to invest low amounts, to do that after midnight in Europe. You save fees this way as gas prices are almost half during these hours.

@BTC Future It is true that Ethereum is the best and well-designed to handle DeFi services as it supports complex smart contract. In the case of Bitcoin, I was trying to tell about a possibility that Bitcoin sidechains may be able to handle the similar services over time. Anyway, I am still into it to decide what will be my best strategies to be on DeFi platform. You have advised so nicely. I would like to thank you for your suggestions 😍

[Abiaan 1209]

there are some coins that has higher value than bitcoin that really makes them compare with the bitcoins, to be in the competition with bitcoin it need millions of users / hodlers and should have good volume of it , always seen such coins or token coming and going in vein

[Whited35 15285]

On 7/25/2020 at 7:15 PM, ndadukun12 said:

I think that people make more money through DeFi and that is why they are investing more into it. I also think that this night be the reason there are high transaction fees in the ethereum Network for instant transactions. These DeFi tokens might have more growth than Bitcoin but I don't think their value will overtake Bitcoin

DeFi platform generally does not have middleman to control over your activities which will be entirely handled  by smart contracts.This can be a major reason so many investors and traders are finding a way towards DeFi. Nowadays, lending protocols are getting more popularity. 

[Whited35 15285]

On 8/21/2020 at 4:03 AM, ndadukun12 said:

DeFi seems to be in control of the markets right now.

I do not have the current exact data but more than 7 billion USD equivalent currencies are locked in the smart contract of Ethereum  DeFi platforms. It indicates, how enormous DeFi craze is there. You know, DeFi tokens like "YFI" are breaking the records in order to be the most expensive tokens or cryptocurrency. 

[rekter 8129]

I don't trust the whole defi boom. Imho it will crash like icos did back in days. And eth fees are just insanely expensive to use trading erc20 tokens. I might also be a little bitter because i missed the whole raise and peak.

[Oplia45 28]

I for my part allow no initiative about Defi tokens and platform but if it is developing that in haste, therefore, it is appeal burden investment in it as nearly every one of the nations doesn't comprehend about it.

[Raqeebzy 6456]

On 7/10/2020 at 8:28 AM, Whited35 said:

So guys, what do you think why DeFi platforms and DeFi tokens are grabbing more attention of investors in the crypto world? Clearly, there is a massive gain for some tokens, is it sustainable? 

Crazy!. I couldn't believe it might took this long until the craze is over but here we are. Even the most experienced set of investors are finding it hard resisting the urge to not miss out on the massive gains. I think this won't be forever, it might go a long way though; definitely not sustainable. But.....

 

increasing funds locked in DeFi and Ethereum dumping, I don't understand what might be the problem with that.

[Whited35 15285]

1 hour ago, Raqeebzy said:

increasing funds locked in DeFi and Ethereum dumping, I don't understand what might be the problem with that.

@RaqeebzyLooking like Ethereum 2.0 is set to launch in November. I believe DeFi craze will also get affected after releasing PoS based system from Ethereum devs. I think I have already given better elaboration in this reply. 

 

[Raqeebzy 6456]

35 minutes ago, Whited35 said:

RaqeebzyLooking like Ethereum 2.0 is set to launch in November. I believe DeFi craze will also get affected after releasing PoS based system from Ethereum devs. I think I have already given better elaboration in this reply. 

Yeah I read about that too. It will be in three phases 0,1 and 2. Phase 0 to be released this year (I guess that's the one expected in November as you said) and the other in the following years. Can't wait actually; what effect will it have on DeFi and the hike in network fee. 

A lot probably have seen the news but unbothered unlike me how seriously it will affect DeFi. We'll wait.

[BitcryptoHan 2557]

2 hours ago, Whited35 said:

@RaqeebzyLooking like Ethereum 2.0 is set to launch in November. I believe DeFi craze will also get affected after releasing PoS based system from Ethereum devs. I think I have already given better elaboration in this reply. 

Very possible that even ether price will increase, many more people will look onto defi projects. But, actually, I may be a bit out of line, ethereum 2.0 would not do anything good than to reducing means of making profit in the society. But, I agree to your point, the price will increase. 

[Whited35 15285]

12 hours ago, Raqeebzy said:

A lot probably have seen the news but unbothered unlike me how seriously it will affect DeFi. We'll wait.

@Raqeebzy Bigger holders will be attracted toward PoS to stake ETH in order to earn more profits which will be more effective than current DeFi lending protocols. PoS based algorithm is looking more effective as Cardano Shelley upgrade has also confirmed that but Ethereum devs have so many challenges in front of them now. They have to care of so many things before releasing Ethereum 2.0. I am curious to see how they manage server up time .

[Raqeebzy 6456]

6 hours ago, Whited35 said:

@Raqeebzy Bigger holders will be attracted toward PoS to stake ETH in order to earn more profits which will be more effective than current DeFi lending protocols. PoS based algorithm is looking more effective as Cardano Shelley upgrade has also confirmed that but Ethereum devs have so many challenges in front of them now. They have to care of so many things before releasing Ethereum 2.0. I am curious to see how they manage server up time .

Absolutely yes. If I should also be holding up to 32 ETH, it would be wiser taking the staking option compared to DeFi. It is way more dependable, and a lot too don't know what would be the fate of DeFi after 2.0 eventually released. Let's just hope everything will go right this time around, don't forget there has been some delay, so I feel it would be flawless when released.

[BitcryptoHan 2557]

20 minutes ago, Raqeebzy said:

Absolutely yes. If I should also be holding up to 32 ETH, it would be wiser taking the staking option compared to DeFi. It is way more dependable, and a lot too don't know what would be the fate of DeFi after 2.0 eventually released. Let's just hope everything will go right this time around, don't forget there has been some delay, so I feel it would be flawless when released.

Defi is only trendy now, it will be a playing ground for scammers later just like ICO in 2017. 

Check one recent Defi scam using the link below. 

 

We need to be careful of defi which will be mainly used by scammers later. 

[Raqeebzy 6456]

12 minutes ago, BitcryptoHan said:

We need to be careful of defi which will be mainly used by scammers later. 

Exactly. Repeatedly, I have seen more than five DeFi protocol platforms taking scam exits this week. People compared it to 2017 ICO craze but I see this much crazier. 

Now later when ETH 2.0 is released, I expect a sharp drop in funds locked in DeFi as many would pull out to staking for safer option. It was said will be released by November as Whited35 said, so let's see.

Edited September 17, 2020 by Raqeebzy

[Whited35 15285]

On 9/17/2020 at 5:31 PM, Raqeebzy said:

Now later when ETH 2.0 is released, I expect a sharp drop in funds locked in DeFi as many would pull out to staking for safer option. It was said will be released by November as Whited35 said, so let's see.

@Raqeebzy Ethereum DeFi craze is on the way but you may get surprised to see another TRON blockchain based DeFi craze. I was just reading some reports regarding yield farming optimizer for JustSwap(Clone version of Uniswap) which was itself looking impressive. 

[Red-Jones 1150]

On 9/16/2020 at 4:26 AM, Oplia45 said:

I for my part allow no initiative about Defi tokens and platform but if it is developing that in haste, therefore, it is appeal burden investment in it as nearly every one of the nations doesn't comprehend about it.

 

What do you mean by your post that I didn't understand anything at all? 

 

On 9/17/2020 at 4:46 AM, Raqeebzy said:

Exactly. Repeatedly, I have seen more than five DeFi protocol platforms taking scam exits this week. People compared it to 2017 ICO craze but I see this much crazier. 

Now later when ETH 2.0 is released, I expect a sharp drop in funds locked in DeFi as many would pull out to staking for safer option. It was said will be released by November as Whited35 said, so let's see.

 

unfortunately in this cryptocurrency market any innovation will always be taken advantage of by scammers. ICOs were a good thing until many scammers started cheating and stealing people. And there were many devs who had no experience with things in the real world but came to deceive investors with false promises and as a result today we have many shitcoins

[SuperCrypto 7193]

On 7/10/2020 at 10:28 AM, Whited35 said:

So guys, what do you think why DeFi platforms and DeFi tokens are grabbing more attention of investors in the crypto world? Clearly, there is a massive gain for some tokens, is it sustainable? 

 

Ethereum-based DeFi tokens outperformed Bitcoin, and projects built with decentralized financing have been the best of the year. I think this means more institutional investors have entered the DeFi space to diversify its assets and make projects highly service-oriented.

[Whited35 15285]

11 hours ago, SuperCrypto said:

Ethereum-based DeFi tokens outperformed Bitcoin, and projects built with decentralized financing have been the best of the year. I think this means more institutional investors have entered the DeFi space to diversify its assets and make projects highly service-oriented.

@SuperCrypto Exactly, so what do you think about an impact of Ethereum 2.0 to DeFi sphere ? Do you think, Ethereum Dapp developers combine DeFi protocols with Ethereum 2.0 ? Incredibly, yield farming optimizer are also grabbing more attentions now. 

[Raqeebzy 6456]

18 hours ago, Whited35 said:

@Raqeebzy Ethereum DeFi craze is on the way but you may get surprised to see another TRON blockchain based DeFi craze. I was just reading some reports regarding yield farming optimizer for JustSwap(Clone version of Uniswap) which was itself looking impressive. 

I won't really, I think I mentioned it in a thread. I would have qoute it but I am not sure where exactly.

Tron is the next bustop on the ongoing DeFi trend. I knew it would be after some attention has been shifted for ETH due to massive gas price. And obviously, I have been coming across such movements of 'smart contracts' on social crypto community. I can't say a lot about it for now but I am watching 😁.

[Whited35 15285]

3 hours ago, Raqeebzy said:

And obviously, I have been coming across such movements of 'smart contracts' on social crypto community. I can't say a lot about it for now but I am watching 😁.

@Raqeebzy Like as you, I am just looking at DeFi madness on both Ethereum and TRON blockchain. I am into Ethereum based DeFi protocols to be served effectively but high network fee has done everything to hook down my craze 😂. I have never tried any DeFi products based on TRON blockchain network. 

[SuperCrypto 7193]

12 hours ago, Whited35 said:

@SuperCrypto Exactly, so what do you think about an impact of Ethereum 2.0 to DeFi sphere ? Do you think, Ethereum Dapp developers combine DeFi protocols with Ethereum 2.0 ? Incredibly, yield farming optimizer are also grabbing more attentions now. 

Ethereum's PoS consensus model is maybe affect DApps, especially in the DeFi space and this change may cause improvements to the entire ecosystem, and I think ETH transactions and DApps will be a strong competitor to other blockchains. Sharing Chains and the PoS Consensus Model will solve some of the fundamental issues for DApps.