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Author: Bit2buzz, translation: Li Hanbo
This year will be recorded in the annals of history, because in this year, encryption activities have become the headlines worldwide. From the decline in digital asset prices to the volatility in the encryption industry. Another major breakthrough was the record-breaking increase in the market value of the DeFi sector to 9 billion U.S. dollars, after which it experienced a slow rise.
In the field of digital assets, things will always undergo rapid changes, because the major activities of high-net-worth clients and investors affect the performance of assets. A typical example is investors flocking to the booming DeFi field, where projects have gathered tremendous momentum and made it the focus of news.
This article attempts to discuss the key trends that have shaped the crypto industry since the beginning of the year.
ETH gas fee
Last month was one of the busiest months for Ethereum, as it witnessed the emergence of DeFi projects on the blockchain platform. Due to the emergence of DeFi projects, investors try to avoid missing opportunities and therefore need to get their transactions approved in time. This has led to the continued increase in Ethereum Gas fees. Uniswap’s records show that as of September 1, the average transaction fee on Ethereum has reached about $15.
Although in this case, Ethereum miners are the biggest winners, for investors, they will be “turned out” due to the high gas fees required for transactions on the blockchain. have nothing to say. It should be noted that Ethereum gas fee is the unit of measurement for transaction fees required to confirm transactions on the blockchain.
Since the end of last year, DeFi has become one of the key trends in the encryption industry. In the past 6 months, this field has experienced rapid growth. Recently, the net value of DeFi locked positions reached a new height of 10 billion US dollars, creating a new milestone. Many companies operating in the blockchain field have already launched their DeFi products.
In addition, popular protocols such as Compound, Balancer, and Curve have brought a new wave of opportunities for crypto investors seeking returns, liquidity, and cheap modern financial instruments under different risks. In addition, as institutional capital enters the field of digital assets, in addition to the growth of the user base, DeFi will soon be further adopted.
Economic crisis and the application of encryption technology
The coronavirus pandemic has caused huge chaos and closures of many companies, and has also given people a rethinking of their attitudes towards many things in life. As a result, things that were previously rare, like encrypted payments or remote work, are now critical, and they seem to stay that way even after COVID-19 is over.
In addition, the time is ripe to get rid of cash and move closer to a new life. Fortunately, the blockchain field has blossomed, because the new era requires more experts specializing in distributed ledger technology. In our modern world, applications that interact with the encrypted world have witnessed massive improvements and become easier to use.
Ethereum 2.0 released
Once again, 2020 has brought another compelling achievement, Ethereum announced that they are making plans to launch an Ethereum 2.0. Ethereum 2.0 is called the second iteration of the previous blockchain used by Ethereum. The new blockchain will provide users with a PoS consensus with consistent interests instead of PoW.
Ethereum 2.0 will be able to handle higher computing power because it will be able to confirm more transactions in a few seconds than the previous blockchain. Currently, it is being launched in phases, but it is not expected to be fully launched soon. The Ethereum team has hinted that the launch date is 2020.
The popularity of YFI tokens
When the crypto community hoped that mainstream currencies would appreciate strongly, the DeFi project YFI in the Ethereum area took the limelight. When the token was launched on July 18, it was priced at only $32, but it has now surpassed the $11,000 mark in just one month.
Price As a result of this move, investors flocked to the project to automatically see that its market value defying sector contributed approximately $600 million in total market value. One of the key reasons for the rapid price increase of the coin’s experts as mentioned above is the scarcity and its holders being used on other platforms.
All in all, although the coronavirus pandemic has disrupted the activities of the entire world, especially the financial industry, the cryptocurrency industry has once again shown that it will overcome any obstacles that block its path.