Defi was bullish for ethereum as it became the most notable trend in the crypto community in the third quarter of the year according to eToro’s latest report which highlighted it as a bullish case for the second-biggest cryptocurrency. In our ethereum news today, we take a closer look at the report.
Crypto traders have steered clear from BTC trading in Q3 according to the e-Toro report while the multi-asset brokerage platform revealed that bigger cap altcoins like EOS, TRON, Tezos, and BNB experienced double and triple-digit trading volume surges. The popular platform published the latest quarterly report where several crucial developments were discovered in the crypto industry. Being a trading platform, eToro broached data summarizing trader’s behavior and the most preferred assets for trading across the world were the alternative coins like EOS, NEO, and TRON.
From the examined digital assets, eToro concluded that only one had a quarter-on-quarter decline in trading volume and that of course is Bitcoin. The report attributed the substantial 38% drop in the rapid popularity explosion of the Defi users that didn’t find the biggest cryptocurrency compelling enough for trading. The situation among the US traders was different to some extent and the frequency of the Bitcoin trading endeavors increased by about 17%. Ethereum and Tron’s trading volume also increased by about 180%.
However, the US traders were most supportive of Tezos and Zcash as the ZEC trading volume skyrocketed by 242%. As with most reports from other companies in the sector, eToro didn’t leave out the huge growth of the decentralized finance field. The paper outlined that a lot of Defi based protocols saw an abundance of new money flowing in the past quarter as most of the projects were built on the ETH blockchain. This also raised a bullish case for the Ether cryptocurrency. moreover, eToro believes that the current Defi craze resembles the 2017 ICO boom which also ended up in many people utilizing the ETH network.
“The amount of ETH locked in DeFi applications in January 2020 was 3 million and has nearly tripled ($8.4 million) since, with a peak of $8.9 million on September 15th. From mid-2016 to 2018, the ICO bubble locked up $16 million ETH. While DeFi hasn’t quite yet reached ICO hype levels, it has been the standout narrative for the cryptocurrency industry since 2018.”
Adding the huge ETH amount that didn’t move in over a year and the growing interest for the ETH use cases “
“tells us that investors are becoming more confident about using ETH as collateral. In theory, this would mean that there is less ETH to sell on the market.”
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