eToro report: DeFi is expected to reach the level of the 2017 ICO boom

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Original:, author: Liam Frost

Translator: Odaily Planet Daily Yu Shunsui

Summary

  • According to eToro’s quarterly report, altcoin trading volume increased significantly in the third quarter.
  • Decentralized finance (DeFi) platforms based on Ethereum have played an important role in this growth.
  • DeFi may reach the level of the 2017 ICO boom.

According to the report, the global copycat transaction volume increased substantially in the third quarter. For example, among eToro’s top 10 cryptocurrencies, Binance Coin (BNB) and Tezos (XTZ) increased their trading volume by 46% and 37% respectively in the third quarter. Although there has been an increase, the increase in transaction volume of the two lags behind the top tokens.

The trading volume of Ethereum (ETH) and Cardano (ADA) on eToro both increased by about 90% in the third quarter. The global trading volume of Tron (TRX), NEO and EOS soared by 203%, 153% and 175% respectively. In contrast, Bitcoin is the only token among the top 10 eToro cryptocurrencies that has seen a decline in global trading volume, a drop of 38%.

Among eToro’s US customers, the trend is basically the same. Although Bitcoin’s transaction volume increased by 17%, so far, most altcoins have outperformed Bitcoin, and most transaction volumes have increased, and some have even increased by more than 200%.

This surge is mainly due to the soaring popularity of DeFi projects, which also gave Ethereum a huge boost.

Guy Hirsch, managing director of eToro USA, explained, “The continued rise of DeFi has played a huge role in the proliferation of altcoins and Ethereum, and in many cases, returns are close to the levels during the 2017 ICO boom.”

Researchers pointed out that all decentralized applications based on Ethereum (including DeFi) require ETH to run to some extent. As ETH “cannot be economically separated”, this becomes a key aspect of ETH’s value proposition.

The report stated, “More than 7.5% of the total ETH supply is currently locked in DeFi. This figure is only 2.7% at the beginning of 2020. This shows that people are increasingly interested in the use cases of Ethereum and tells us that investors are interested in using ETH. Become more and more confident as collateral. In theory, this means less ETH sold in the market.”

In the past few months, the increase in DeFi’s popularity has also played an important role in attracting new retail investors into the crypto space, and has generally promoted the adoption of cryptocurrencies.

Joshua Frank, CEO of The TIE, a digital asset data provider, said, “Although the main feature of the second quarter of 2020 is the continuous improvement of infrastructure and signs of support from emerging institutions, the third quarter reminds us that encryption is still In the third quarter, although MicroStrategy’s investment of $425 million in Bitcoin is undoubtedly a bright spot, the rebound in DeFi, Yield Farming, NFT and altcoins remained the dominant factors in the third quarter.”

He also compared DeFi with the ICO boom in 2017, even though DeFi is not that big yet.