The decentralized financial market in the cryptocurrency field has reached a crazy position in the cryptocurrency industry, which signifies high prices and rampant speculation.
Kosala Hemachandra, CEO and founder of MyEtherWallet (MEW), said in an interview with Cointelegraph: “DeFi is a new concept that has been overhyped in Ethereum.” He said: “The noise is too loud, so everyone is running around. , Trying to find out what the next blockbuster product is, and then invest a lot of money without doing enough research.”
Back in 2019, DeFi may bring us a different concept from today. The core of DeFi is a way for people to borrow, lend, and store their cryptocurrency assets. However, during 2020, DeFi has shown explosive growth, and some projects that do not know where they came from have attracted great attention. At the same time, speculators have transferred funds to the DeFi field for price speculation and calculations. Interest tools to find the best profit.
The MEW founder explained that in the DeFi field, winners and losers abound, and winners have increased the momentum of this movement. With the outbreak of DeFi, the Ethereum network transaction fees have skyrocketed in recent weeks, and sometimes each transaction requires users to spend 40 to 80 dollars.
Hemachandra said: “So far, this is the main reason for the Ethereum gas fee problem.” However, he pointed out that the current situation is an opportunity for the DeFi industry to scale up to meet the challenges and improve the Ethereum-related issues. Solutions and explain that tensions can stimulate growth.
Others pointed out that another potential problem with DeFi is that Ethereum’s transaction volume per second is too low.
