DeFi has been a widely talked-about sector over the past few months. This is not at all surprising in light of the fact that DeFi’s market cap has risen exponentially over the summer.
A look at DeFi Pulse’s charts clearly underlined the rate of growth since the TVL in DeFi had risen to $6.69 billion, at the time of writing, with the figure climbing from a mere $1.5 billion two months ago. At the same time, while $815M were locked in for Compound, the TVL for Synthetix was upwards of $756M.
However, that’s not all, as the explosive growth in the DeFi space has directly influenced transaction costs in Ethereum as well. High transaction fees could be counterintuitive to the price and demand of Ethereum. However, it can be argued that the opposite is true too as an increase in demand for DeFi has left traders scrambling for more Ethereum “gas” to pay network fees, driving Ethereum’s demand in the long run.
Such surging demand has allowed the sentiment in the Ethereum market to remain largely bullish, with the same highlighted by the Aggregated Open Interest in Ethereum Futures charts from Skew. Continue Reading