- The Ethereum mass adoption increases due to the DeFi explosion this year.
- Making 2020 the year of ETH, there has also been a growth of Ethereum first and Ethereum only investors.
The influx of various crypto startups in the crypto space triggered the Ethereum mass adoption in the past months. As a result, Ethereum remains as the second largest cryptocurrency and one of the most frequently-used crypto next to Bitcoin.
Despite Bitcoin being the number one cryptocurrency, Ethereum continues to develop its platform to remain competitive against other cryptos. Hence, Ethereum attracts more investors.
One of the people that notices the growth of Ethereum investors is the managing director of Grayscale Investments LLC. Michael Sonnenshein said that:
Over the course of 2020, we are seeing a new group of investors who are Ethereum first and in some cases Ethereum only.
On the other hand, the CEO of financial media group Read Vision, Raoul Pal, said in his recent documentary about Ethereum that he always thought the digital asset space is huge. “It’s not just bitcoin – because there are going to be different applications for different things,” he explained.
Furthermore, the surge of the DeFi space this year contributes a lot in terms of the mass adoption of Ethereum. This is because of the high demand for DeFi startups that use Ethereum as their underlying technology. Today, the DeFi space total value locked (TVL) amounts to $14.74 billion. It has a growth rate of over 1,000% from its $662.18 million TVL last January 2020.
With all these performances, Ethereum positions as a profitable investment this year. It might continue its bullish escapade in 2021 if the investors remain loyal to the network. However, if the market turns against the crypto, Ethereum’s luck may turn the other way around.