Latest News and Developments in the DeFi Crypto Market

Bob Coiney

December 1, 2020

DeFi is also known as decentralized finance. In the crypto market, this is one of the hottest things to have happened at the moment. It makes use of blockchains, smart contracts, and crypto-assets for giving top-notch financial services to traders. 

They could be loans, payments, and investments. Though it is a new concept, DeFi is spot on to become a product of immense expansion because it has the scope of revolutionizing the blockchain industry’s infrastructure.

Launch of ETH2 Staking

A news report on Defirate highlighted that the launch of ETH2 staking was the best thing to have happened to the crypto market. From the year 2017, crypto market experts have been on prediction of the ETH2. 

However, the year of the launch was accurately missing. Today, that prediction comes true, and those who believed in it can rejoice. Users can now effortlessly participate in the initial bond offering for any decentralized economy. 

Using the 32 ETH, several bond offerings can be done. As it is in the initial stages, traders might want to be cautious about staking in it. However, those that have taken the risk initially were rewarded the most in the cryptocurrency market. 

Perhaps, that is how it works. Ryan Sean Adams, who is a crypto investor and keen follower of DeFi, had this to tweet about the development.

Few of the biggest whales in the crypto market, like Vitalik, are already locking up their ETH. It enables them to participate in the network, and the market is beginning to respond positively. This is happening when DeFi is disrupting traditional finance.

Ethereum Based Token of New DeFi Trading Platform Rages 1,000% in Just Two Weeks

Here is an interesting news article on Cryptoslate stated that the Ehereum based token of the new DeFi trading platform rages 1000% in just two weeks. Though Bitcoin and Ethereum are doing poorly, that has not stopped DeFi raising plenty of traction.

The spot exchanges such as SushiSwap and Uniswap, which are decentralized have gained plenty of traction; traders have only a few sources to obtain more cash. One of them is Ethereum where users can gain leverage in a decentralized manner. 

A few weeks earlier, SynLev launched a pool of Ethereum that designs synthetic leverage of 2-4 times. It is the same as other exchanges that include FTX that let traders obtain leverage without having liquidation levels.

Users can place bets using Bear tokens where they expect the market to go. However, the tokens must not be held to a more extended period of time. Santiago R. Santos, who is a partner of a DeFi fund, Parafi Capital, had this to tweet. 

Santos feels that the new protocol is pushing hard at “+10M in 24H volume.” There are no visible signs that are going to slow down for now. The former JP Morgan banker is impressed with the capital flows and rotation. 

Can DeFi Finally Make Crypto-Based Passive Investing Worthwhile?

According to a news publication on Cointelegraph, they clearly highlight that the DeFi concept is good but comes with risks. Index investing today is a popular mode of investing in the crypto market. 

The surge is because exchange-traded funds or ETFs get proliferated seamlessly. However, they track market indices like the S&P 500 or the Nasdaq-100, which make them worth investing in the first place.