Last year was pretty dismal for most cryptocurrencies, Ethereum included. One crypto-based industry showed impressive growth despite the grim market outlook, and that was decentralized finance.
Ethereum Based DeFi Doesn’t Care
Ethereum had a pretty grim year in 2019, ending it 6% lower than when it started. The mid-year pump was completely annihilated as ETH fell back to $125 again, not far from its 2018 low.
Fundamentally the network has continued to improve and a large part of that was due to decentralized finance. DeFi enables investors to lend or borrow digital assets via secure smart contracts. Interest rates vary depending on the demand to borrow a particular asset.
It is the first step to becoming ‘unbanked’ as there is no intermediary taking a cut or controlling finance flow. The only fees payable are network ones such as…
Click to continue reading on its source location…