- Chris Burniske says, that if we think DeFi will have a smaller impact on Ethereum than the ICOs we may be wrong.
- Despite the stagnancy of Ethereum’s price, its Defi sector has been growing.
- Data shows that since the last year, the DeFi sector has grown by 300% in terms of market capitalization.
In a recent tweet, Chris Burniske says, that if we think DeFi will have a smaller impact on Ethereum than the ICOs we may be wrong. He added that ICO may have flexed Ethereum’s
ability to perform one financial service but the DeFi will flex Ethereum’s ability to
perform all financial services.
— Chris Burniske (@cburniske) June 15, 2020
Who Is Chris Burniske?
Chris Burniske is a Stanford Graduate. Originally he’s from Honolulu. Burniske is a
partner at Placeholder VC. Before this, he was a Blockchain Product Lead at ARK
Invest, a Fintech company. He also wrote the book: ‘The Innovative Investor’s Guide
to Bitcoin and Beyond’. He predicted that the next cycle of Ethereum and Bitcoin will
be bigger than the 2017 boom. He believes that the Bitcoin price can rise as high as
50,000 US Dollars and in the case of Ethereum the price can rise up to 7,500 US Dollars.
DeFi Sector’s Growth Despite Stagnancy In Ethereum’s Price
The Ethereum market has somehow managed to recover itself from the recession that happened in the month of March, due to the Covid-19 pandemic. However, despite the stagnancy of Ethereum’s price, its Defi sector has been growing. The current worth of Ethereum is somewhat worth, $234 with a whopping 16.50% gains in the last 30 thirty days. However, just like in the case of Bitcoin, where it couldn’t manage to go up the 10000 US Dollar historical restriction, Ethereum too has not been able to cross the 240 US Dollar mark.
DeFi is basically a Blockchain industry movement. The movement aims to revolutionize the traditional banking system without using centralized technologies. Bitcoins are a huge example of this. As of now, Ethereum is currently a standardized smart contract accepted globally. Hence this provides the perfect foundation for the DeFi sector.
Currently, the total block value (TVL) amounts to 1.01 billion dollars, as said by the DeFi Pulse. This means that since the DeFi sector has recovered itself by 77 percent from the ‘Black Thursday’ of March, it has caused the total block value to drop down to 550 million US Dollars.
Data shows that since the last year, the DeFi sector has grown by 300% in terms of market capitalization. This comes as a surprise because the entire cryptocurrency market has only grown by 100%. In statistical terms, the growth of the DeFi sector can be termed as exponential growth. This only means that the DeFi sector has come a long way in the past couple of years and is making great impacts in the decentralized finance world.