Cryptocurrencies

Ethereum at $ 345 on October 2, 2020

Ether (ETH) opened on September 25, 2020 at around $ 350; It is trading at 345 USD today, October 2, 2020, as of this writing. It hasn’t changed much! DeFi remains THE hot topic for Ethereum, which benefits and suffers at the same time.


ETH 2.0: Rightly or Rightly Criticism?

And we start with the criticism of crypto personalities against a Ethereum which they consider unable to support the expansion of DeFi.

The mathematician, fund manager and founder of the Austrian crypto platform Morpher, Martin froehler, indicated this week that the current network capacities are insufficient for DeFi: Ethereum can only process about 15 transactions per second and has a block time of 15 seconds “, which is too long in finance.

Furthermore, Ethereum Today has a significant barrier to entry and, which complicates its mass adoption: cryptophiles who want to use the network must have Ethers.

Froehler contrasts with what happens on the sidechain: users can trade there without Ether, they don’t have to pay transaction fees and benefit from a one-second settlement time. They are also spared from the congestion of the main network.

The CEO of DEX 1inch, Sergej Kunz, had indicated during the DeFi marathon of Cointelegraph China September 3, 2020, it was necessary “Rethink everything” speaking of the ability toEthereum to support DeFi.

TheEthereum 2.0 He said could improve network performance, but the explosion of gas can deter potential new users.

DeFi experts are pessimistic about the ability toEthereum 2.0 to solve the problems of DeFi, while approaching the last bend with the testnet Spadina.

Far from these criticisms, Vitalik Buterin him, shared today on the forum Ethereum Magician, the scalability strategy ofEthereum which will be based mainly on rollups, the Plasma ETH and state channels. This strategy – and Proof-of-Staking – should allow theETH 2.0 process up to 100,000 transactions per second.

What challenges for success in DeFi?

DeFi is certainly facing technical problems, but it has also had great success. The founder of Mythos Personal-Financial.com, Ryan sean adams, analyzes the 3 factors behind the success ofUniswap.

The 1st is quite simply the creation of real value, the fact of bringing “Something people want”. The second is the use by Uniswap “superpowers” ofEthereum. The third is working with Ethereum’s constraints on product and platform suitability.

The 3rd quarter of 2020 saw the explosion of Total Value Locked on Ethereum and Uniswap.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

The explosion of DeFi should logically explode the price of Ether, but the technical constraints of the network finally got the better of the theory. Vitalik Buterin and his team are playing big with Ethereum 2.0: they have a double chance to succeed or to fail in style.

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