Stealing Bitcoin's limelight? New DeFi Trends to Watch Out

[Hugo Barbosa]

BitOffer Institute

While this year marks a crucial time for bitcoin as it is the third time of the Bitcoin halving, also an important year for the launch of Ethereum 2.0. However, the hottest topic at present is DeFi. So far, DeFi's lockup volume has exceeded $8.5 billion, with a total value of over $350 billion, is a very small percentage in the crypto market, which is only a quarter of bitcoin's total market value, so there's a lot of space for DeFi to grow in the future.


Compared with CeFi, DeFi's current size is negligible, considering that traditional derivatives have a market of billions and the total digital currency is only 1% of it. If we move the entire CeFi financial application to DeFi, we believe that DeFi must be the next trillion market for cryptocurrencies.


In the enlightenment in the last round of encryption DeFi fame will leave the two factors, one is the value of the currency, found that the currency market capitalization trillion-dollar, was building consensus in the financial market, make people recognize the value of it, became a store of value and value flow of assets, has become the first important underlying assets of the digital age, become the digital gold.


In the last round of the Encryption Enlightenment, DeFi's popularity stemmed from two factors:


The first is that the value of Bitcoin is beginning to become widely known. The total market value of Bitcoin has exceeded one trillion, establishing a consensus in the entire financial market and making people recognize its value. It has officially become an asset of value storage and value flow, and the first important primary asset in the digital era, becoming digital gold.



The second is that Ethereum brings digital currency into the 2.0 era, namely the rise of the smart contract. The smart contract platform based on ETH can construct various complex logic financial products, which is suitable for the development of open finance with various ways of playing. In addition to CeFi's complex process, low efficiency, and high barriers to participation, DeFi quickly gained popularity due to its decentralized, efficient, fast, easy to operate, and anonymous features.


DeFi currently has around 400,000 users, representing 1% of the total number of users in the encryption space. Specifically, in the DeFi project, Uniswap currently has about 280,000 users. There are over 50,000 users at Compound, close to 20,000 at Maker, and less than 10,000 at Synthetix.


In terms of user size, DeFi as a whole is still in a very niche stage, although it seems to be booming recently in terms of liquidity mining, online exchanges, futures, options, and so on. And although the participation threshold of DeFi is very low, use the threshold is very high, for most users, however, compare with the registered steps, the key management, wallet interactions with the agreement, which also involves borrowing, trade, mining, synthetic property all sorts of more complex interactions, such as various arbitrage strategy, mining strategy... that's too difficult for ordinary users.


Especially for new investors, just to register the wallet and manage the secret key, recharge mortgage has been very complex already, and then to understand the trading logic, liquidity mining, and assets... This strategy may not seem like a big deal to the core investors, but it is a huge headache to most ordinary individual investors.


In addition to the high barriers, DeFi also has a large interest rate fluctuation, which makes it difficult for users to choose which platform to use to provide liquidity. This lays the foundation for the emergence of aggregators and is expected to be the next trend for DeFi. It gives users direction and makes it easier for them to participate in DeFi without worrying about complex operations, high costs, selection, security, etc. It only needs one click and all the work is left to the bottom layer of the aggregator, making mobility easier.

The presence of the aggregator helps drive the development of DeFi, and the popularity of DeFi will drive the price of ETH to go up, most likely to a new high in the short term, so now is the perfect time to buy ETH. However, buying BitOffer's Ethereum ETF Ethereum is better than buying a future, in which profits start at a minimum of three times. Besides, it also includes an intelligent dynamic position reallocation mechanism and the calculation of fund compound interest with the returns of up to 17 times. If Ethereum manages to outperform Bitcoin by 50 times, the Ethereum ETF could rise by as much as 850 times. At that point, you will have truly achieved financial freedom and reached the top of your life.