With the price of Bitcoin successfully breaking the $ 13,000 barrier after PayPal announced it would venture into digital assets, October is meeting the excitement that September failed to provide. Ethereum, for its part, has seen its popularity increase throughout 2020 due to the increase in DeFi. But some DeFi skepticism is being expressed about the outlook and long-term sustainability of decentralized finance.
And, the price of Ether (ETH) has also recovered. But confidence in DeFi is starting to falter as the industry’s growth and hype slows. This is what a recent Finder report shows where 30 panelists offered their opinions on the matter.
DeFi has been the main driver of the popularity of cryptocurrencies in 2020, but now, other digital assets seem poised to start thriving and could reach sizable levels by the end of the year.
Many of these panelists point out that DeFi will play a critical role in the success (or failure) of Ethereum. Most panelists (64%) expect DeFi apps to grow steadily in both locked value and user count over the next 12 months.
However, four panelists showed some skepticism of the DeFi. Specifically (13%), including CoinMama CEO Sagi Bakshi. Who doesn’t expect DeFi to grow over the next year.
Bakshi believes DeFi is growing too fast in an irresponsible and unregulated way. “It will implode with a huge loss of user funds, kind of like Mt. Gox,” he says.
Bergstrand and Kruger are among the remaining 23% who are unsure and who also expressed their skepticism of DeFi. Both warn that they are concerned about a possible bubble.
“There is so much potential in the world of DeFi and the progress has been amazing so far. While we believe that growth is there for years to come, we are concerned about the possibility of a bubble burst that could compromise growth prospects for the next 12 months. Since things have gone so far and fast ”. Kruger says.
For now, the market continues to give the bullish signals for Bitcoin (BTC). Experts believe that a 2017-style rally may be on the way. While DeFi skepticism appears to be escalating in the long term.
Future of DeFi Unveiled at Ethereum Virtual Hackathon
This year’s ETHGlobal event has been renamed ETHOnline and takes place virtually due to COVID-19 concerns and global travel restrictions.
The summit of one of the most popular communities in cryptocurrencies has been held for almost the entire month of October. And it includes fireside talks with industry leaders, construction workshops and a hackathon with $ 125,000 in prizes.
Last week he focused on the DeFi sector. DeFi Prime has taken a look at some of the more exciting projects that could be on the scene in the not too distant future.
The list of new projects is too long to name them all, but some notable developments include: Entropy Chain, Protekt Protocol, Tokenlog, GoodGhosting, Juicer Protocol, Unipeer, Crescendo, Croco Finance, SIGH Finance, Oligo, NewFi, Flavor Finance, and Mindful .
As DeFi continues to grow, it is highly likely that many of these projects and concepts will launch before the end of 2020.
Uniswap surpasses trading volumes above $ 2 billion
Daily transaction volume on Uniswap increased by more than 1,200% to a record $ 2,040 million. Beating the previous record of $ 953.59 million recorded on September 1 by a large margin.
“Uniswap’s volume increased as the Harvest Finance operator likely passed money through the automated market maker”Denis Vinokourov, head of research at Bequant, London’s main brokerage, told CoinDesk.
Likewise, the daily trading volume on the decentralized exchange Curve Finance also increased to more than USD 2 billion.
Harvest Finance Token Crashes One After Attack Destroys TVL’s DeFi Site
According to reports that came to light early Monday, an unknown attacker has extracted more than $ 25 million worth of Harvest Finance funds and traded it for renBTC (rBTC).
Other funds have been mixed through Tornado Cash, an Ethereum obfuscation software. Following the attack, investors appear to have withdrawn approximately $ 350 million from the site.
“We are actively working on the issue of mitigating the economic attack on the Stablecoin and BTC groups. And we will update on this thread in real time as soon as additional details are available »said the anonymous team behind Harvest Finance in a tweet.
The team further said that the “economic attack” was made possible by manipulating the prices of stablecoins on Curve Finance. Another DeFi protocol that Harvest Finance contracts interact with.