- Bitcoin markets attempting to recover above USD 9,000
- DeFi is growing exponentially in the past 12 months
- Ethereum whale transactions with millions of dollars in fees spark wild speculations
Bitcoin markets are still taking their time to recover on this Friday, but the bulls will be encouraged by the signs that are taking place before the weekend, most notably that the pullback did not worsen after yesterday’s failure to breach USD 10,000.
Bitcoiners everywhere might be slightly disappointed by this turn of events but there is still so much positive movement elsewhere in the blockchain industry, especially in decentralized finance (DeFi) sectors.
1/ Number of newly deployed DeFi assets per month. Looks exponential to me ?
Of course, @UniswapProtocol is leading the way, but @tokensets and @BalancerLabs are catching up! pic.twitter.com/jh4Zdy2a8w
— evgeny.eth (0,1) (@evgeth_) June 12, 2020
DeFi has not stopped its incredible growth rate, even after the Black Thursday wipe out on some of the world’s largest platforms earlier this year which saw investors lose money when liquidations took out collaterals. But now, new DeFi assets have grown almost 900% year on year.
Zerion DeFi project founder Evgeny Yurtaev put out a comparison chart on Twitter that should a doubling of new assets in the last month alone, suggesting an exponential pattern of growth to see the Uniswap Protocol account for three-quarters of all the 1,000-plus new assets.
According to Yurtaev, this growth is simple to explain when put in the context of Ben Thompson’s Aggregation Theory, similar to the way content grew thanks to the Internet. He explains:
“It all comes down to the cost of distribution. Internet brought it close to zero for the content. However, it did not happen in finance. Imagine you come up with your own version of S&P500. How would you go about implementing it? Even investing your money in it? Impossible.”
He calls DeFi the new fintech, saying that fintech did not really bring the cost of distribution of finance down to zero like the internet did for content. But DeFi will achieve exactly this, he believes.
On Ethereum, crypto data firm Dune Analytics counts almost 600,000 DeFi solution users now, with Kyber and Uniswap contributing to 193,000 users in May (excluding 362,000 DAI users). There was a slight drop in March, which they believe is caused by COVID-19, although we believe here it’s more likely the simple Black Thursday event that broke some DeFi platforms like Maker DAO.
Nevertheless, all the numbers point to growing users and as projects become easier to use, this number can only grow. In fact, it is projected to break USD 2 billion by DeFi Market Cap. Most crypto users know of DeFi; a CoinGecko report last month said 89% of respondents found out about it through the MetaMask app.
Meanwhile, Ethereum developments are making waves these few days with big whales moving transactions across the blockchain… for millions of dollars in fees. Yesterday, two ETH transactions happened, giving out over 10,668 ETH in fees each, meaning to say that both transactions collectively paid USD 5.2 million in fees.
When the transactions first came to light, people were making all kinds of speculation. At first, it was a big mistake (and it’s happened before too!) but when the second transaction came out it became clear that something else was afoot.
And now, unlike the previous two transactions, this third one sent 3,221 ETH, higher than the fee, from an address that said (MiningPoolHub: Old Address 7) in its tag. This new address contained many smaller transactions sent to the same address, with only about 2 ETH with smaller fees from 0.0005 to 0.29 Ether. This transaction still paid over half a million dollars in fees though, less than 24 hours after the first.
WOW another abnormal ETH transaction with over 2K ETH fee just emerged, following the previous two incidences each with over 10K ETH fee
This to me is NOT a bug, more like a MESSAGE. A whild guess us certain exchange/wallet/ETH services is being “kidnapped” by hacker (explain?? pic.twitter.com/gZSL7V5AoM
— Dovey “Rug The Fiat” Wan?? (@DoveyWan) June 12, 2020
One of the craziest speculations comes from Primitive Ventures founding partner Dovey Wan who said:
“WOW another abnormal ETH transaction with over 2K ETH fee just emerged, following the previous two incidences each with over 10K ETH fee. This to me is NOT a bug, more like a MESSAGE. A wild guess is certain exchange/wallet/ETH services is being ‘kidnapped’ by hacker.”
Another anonymous researcher called FrankResearcher suggests: “A high fee is due to the fact that hacker’s gas price is a function of the amount of stolen funds.”
True or not, something big is happening on Ethereum!
BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.
Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews
Image Courtesy: Pixabay
