A great debate is taking place across the cryptocurrency community, arguing over if decentralized finance (DeFi) will have a similarly bullish impact on Ethereum price when the next bull market begins.
And while it is difficult to argue that such astronomical gains will happen yet again in the altcoin, the alternative to traditional finance could be a far more sustainable trend than ICOs which are now dead and demonized.
Explosive Ethereum Growth From ICO FOMO May Never Repeat
Bitcoin shocked the world in 2017 by rising from $1,000 to just under $20,000 at its peak. The highly-publicized parabolic rally led to widespread retail FOMO and the asset became a household name.
As investors learned of the wealth generated by the new asset class, there was a mad rush to not only Bitcoin but altcoins like Ethereum.
Giving Ethereum perhaps even more value during the 2017 run-up than even Bitcoin, was the fact that Ethereum was largely used as a platform for launching new crypto ERC-20 tokens, through a new fundraising platform called initial coin offerings.
Investors feverishly traded ETH tokens in exchange for early access to newly minted altcoins in hopes of striking it rich by finding the next Bitcoin. The demand caused Ethereum to absolutely explode by over 17,000%.
Those tokens, however, are now virtually worthless in most cases.