DeFi ushers in new milestones, finance is still Ethereum's main use case

Ambcrypto reported on February 10 that in the past few months, decentralized finance (DeFi) has continued to grow and reached a new milestone, with a total locked-in value (TVL) of more than $ 1 billion.

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Image source: pixabay

Interestingly, the use of Ethereum in DeFi continues to expand, because so far most decentralized financial ecosystems are built on top of Ethereum. Camila Russo, the founder of DeFi-focused newsletter "The Defiant", said in a recent podcast that DeFi is one of the most important applications of Ethereum. He said:

"I think that in this regard, finance has become the main use case of Ethereum at present because it occupies an important position in the non-blockchain and traditional economy. It is very old and mature and may be subverted at any time. We We still rely on many intermediaries, we still have to pay such high fees, we are still confined to where we were born, and we still have limited financial services. There are many obstacles to the flow of value and money. "

While discussing the existence of content Internet, the author emphasizes the necessity of the existence of value Internet. Content can be modified, saved, and shared worldwide, but value cannot do it. Russo believes that the blockchain solves the fundamental problem of creating a true "Internet of Value."

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DeFi monthly independent user chart on Ethereum in 2019 | Source: Binance Research

Although the birth of Bitcoin is the first step to achieving this goal, Russo believes that by allowing "value use cases to be used in a decentralized manner," Ethereum "can and is further advancing this goal with programmable currencies." . The former Bloomberg reporter further added:

"This is a big event that needs to happen, and there needs to be a way to really control its own value. When Ethereum provides a way to do this, you will see a use case that really fits it, and then people will also Will be really excited. "

The price of Ethereum has also begun to rise this year. As of press time, the price of ETH is around $ 220, which has increased by more than 1% in the past 24 hours. In addition, the cryptocurrency has a market value of approximately $ 25 billion and a 24-hour transaction value of $ 15 billion.