Ethereum is seeing quite a massive influx of money pumped into the cryptocurrency– which prioritizes the role of the Wall Street players. All it needs is some major player taking an interest in the cryptocurrency sector and the DeFi exchange- as stated by a new report.
Coinbase previously mentioned that Ether was consistently outperforming every other cryptocurrency- which also includes Bitcoin. Interestingly, this was mentioned in the half-yearly review of the different cryptocurrencies. Ether has gone above Bitcoin in the last six months when it comes to trading volume and growth.
The total exchange volume of Ethereum went up by 1,461% in the first six months of 2021 to a sum of $1.4 trillion. On the other hand, the trading volume for Bitcoin in the same period has only increased by 489%- although the volume is nearly double of Ether.
The fledgling cryptocurrency has also increased its total value this year. The second-largest cryptocurrency in the world has had an appreciation rate of about 895% over the last year, with an increase of 210% in the half-yearly period.
What Has Led To The Rise Of Ethereum In 2021?
As stated by Coinbase, it all comes down to DeFi. The report stated that a surge of DeFi protocols that have been built on Ethereum helps in validating the value of the network as a platform for developers and also as a global financial utility.
DeFi refers to those projects which aim at revolutionizing and replacing the current methods of lending, borrowing, and banking as has been seen with traditional finance. This enables them to be hugely lucrative with most of them built around Ether. Currently, almost $61.2 billion has been locked into the DeFi ecosystem- according to the Pulse data of DeFi. This refers to the large sum of cash that has been running through most of the DeFi projects. One of the biggest contributors to this amount has been Ethereum.