When it comes to the cryptocurrency, it is all about the use cases for the future now and it seems that Decentralized Finance is making a strong comeback after several years of obscurity. So much so that it is often being seen that it is even eating into Bitcoin’s share of the market and if that continues, we may see a $400 Ethereum in the near future because of this.
Decentralized Finance (DeFi) is not a new idea at all. Rather, it was enivsaged during the early years of working of the sector when futurists saw blockchain technology as a way to start a fintech revolution. In this revolution, loaning and financing will be decentralized and thus be able to move at a quicker pace and become much more efficient than the current centralized model.
Recently, several DeFi platforms and enabling cryptocurrencies have posted considerable growth. From the 350% growth witnessed by Chainlink (LINK), Celsius and the monumental increase in market cap of the primary stablecoin that enables these platforms USD Tether, the future of DeFi seems to be bright ahead and may pick up steam in the coming months.
Ether has historically been built for the execution of decentralized projects like DeFi is. The programmable nature of the cryptocurrency allows execution and control of the projects within the Ethereum ecosystem. While scaling issues persist, it is true that Ethereum is currently the most capable platform to help the DeFi industry grow further.
Ether, just like the higher capped Bitcoin has been in a kind of squeezed, narrow trading range for more than 5 months, Ether’s price range is largely stuck between $190 and $230 for a long time. Here is the daily chart for the cryptocurrency:
Image source: TradingView
Now, the good news for Ethereum is that due to the current DeFi furore and upcoming crucial updates for the project, it can be seen that the cryptocurrency is looking to bounce back and take back some share of the market from Bitcoin itself. Ether is currently trading at the ascending signal, however, this trend needs to be closely followed by the traders and they should see whether this theory holds or not.
Ethereum is at crossroads for what can be described as the upteenth time due to the upcoming major updates and scaling and what not. However, in the short-term, the DeFi industry might just push it into bullish territory. For now.
Feature image source: pixabay.com
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