The most skeptical expect the DeFi bubble to explode, but for the moment, it is the gas that is exploding on Ethereum (ETH). September has not been kind to cryptos in general: Ether is on the casualty list even though the network ultimately fares better than that of the oldest crypto.
Gases make the fortune of ETH miners
We start the last quarter of this year 2020. How will DeFi fare? Its growth boosted by an influx of capital to the sector, particularly towards yield farming activities, seems unstoppable for the moment.
Warnings from crypto personalities addressed to investors, in particular calling DeFi a financial bubble, have fallen on deaf ears.
The rise of DeFi has caused the gas to explode on Ethereum. Statistics indicate transaction fees up 47% in September 2020 compared to the previous month.
According to data from Glassnode, minors ETH recorded gains of $ 166 million in transaction fees – for comparison, $ 26 million for miners Bitcoin (BTC) – a new ATH for the network.
Ether fared better than Bitcoin
The network Ethereum recorded a 60% rate of return, far ahead of that of Bitcoin at 18%.
TheEther However, the storms of a catastrophic September did not escape the storm that sent it down 18%. TheEther is currently trading around $ 365.
The increase in costs has brought layer 2 solutions back to the forefront and, Vitalik Buterin itself supports the integration of these.
He claims that these would makeEthereum an infrastructure suitable for payments.
Ethereum recently launched testnet Spadina, the last one before the deployment ofETH 2.0.
This last theoretically should solve the problems of a Ethereum which is bending under the weight of DeFi but, experts are pessimistic about this.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Buterin and the developers are they double or double with Ethereum 2.0? Is Proof-of-Staking really the solution for network scalability while reducing gas? ETH 2.0 has encountered many obstacles in its path, and the migration to it will not happen overnight. It will take a long time before the magic expected or hoped for, it is according to network users, takes place. And time may be a luxury Ethereum can’t afford with DeFi getting bigger and bigger.
Litecoin, welcome in the Silver Age