Most crypto experts believe that a major reason behind the growth of Ethereum has been spurred on by events such as the DeFi Summer. But, the popularity of Ethereum could potentially be leading to its fall. This is because most of the other protocols have been looking to consume the position that Ether currently possesses.
As it stands, this decentralized finance giant has been making some rapid growths in the crypto sector- and it wouldn’t take much for parties to attack it- as they would be coveting the pedestal that Ethereum currently stands on.
Ethereum Could Lose Out on DeFi
Interestingly, Cointelegraph Research recently managed to push out a 74-page report that went deep into the rise of Ethereum to this position. This was first started off by examining Bitcoin along with the history of Ethereum, and its current places in the cryptocurrency industry.
Ethereum also provided its users with a method to create and establish smart contracts in a way that Bitcoin was not able to, which definitely helped increase the popularity of Ethereum to its current status as the leader of all blockchains that accepted DeFi. But, Bitcoin is definitely here to stay, and that has been made clear with its layer-2 solutions looking for scalability fixes.
Currently, Ethereum possesses a total value locked sum of over $150 billion across all of the applications of DeFi that have been running on this blockchain since 2021. Some of the services that have been offered by the decentralized applications on Ethereum encompass derivatives, lending, asset management, trading, stablecoins, and insurance.
One of the biggest fears that Ethereum has to deal with is that there are many DeFi protocols that have been trying to climb to the top of the charts. In just the last few years, only a few of these protocols have been able to gain a strong adoption among users, along with popularity and acclimatization to real-world use cases.