In terms of token prices, Ethereum is still under the weight of a bear market, but its potential to drive a trillion-dollar financial market is obviously much greater than the pressure.
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Ethereum currency protocol requirements
As a tradable asset, Ethereum is still at the deepest of the two-year bear market, and its price has returned to the level before the cryptocurrency really took off in mid-2017.
Subsequently, the ICO boom emerged, and the demand for Ethereum surged, driving the price of ETH to an astonishing $ 1,400. Today, the price of the token is only $ 160, but its potential as an internet currency of the future has never been greater.
There is a clear need for Ethereum's currency protocol. This is evidenced by the rapid growth of the decentralized financial (DeFi) market last year. In 2019, the total dollar value locked by the DeFi industry has increased by 140%.
According to data from defipulse.com, this level currently reaches a record $ 878 million and is expected to reach a landmark $ 1 billion when the ETH price picks up in the first half of this year. DeFi locked 3.1 million ETHs, accounting for 2.85% of the total ETH supply.
According to Ryan Sean Adam, who published a quarterly internal newsletter called Bankless, projects such as MakerDAO and Compound are leveraging Ethereum's license-free financial infrastructure to create a global financial New paradigm. He said:
"ETH is a trustless value that provides an economic advantage to Ethereum's licenseless currency agreement."
These currency protocols are currently at record levels and they are increasingly consuming the economic advantages of Ethereum. From 2017 to 2018, ETH ignited the enthusiastic wave of ICOs.In 2019/2020 and beyond, it was used as the base currency for global decentralized finance, and this is just the beginning.
Although the price of ETH is falling throughout 2019, and in fact its price at the end of 2019 is lower than at the beginning of the year, the amount of ETH locked in DeFi continues to rise.
DeFi products surge
Various DeFi projects and services have really improved in mid-2019. Until then, the ecosystem was dominated by MakerDAO.
In general, other loan agreements, derivatives, decentralized exchanges and DeFi products are entering the market, and they account for almost a third of the total.
Another license-free currency agreement called Synthetix has also recently exploded. This is a license-free comprehensive asset issuance agreement based on Ethereum, and the total value locked to date has exceeded $ 160 million.
This is just the tip of the digital iceberg, so with the growth of the DeFi market, when the market value of Ethereum grows from the current $ 18 billion or so, Ethereum has the potential to mortgage new financial assets.
With Ethereum as the foundation, the future trillion dollar market of Internet currencies will one day come.