When it skyrocketed to almost $ 1,500 at the peak of the ICO popularity, and then fell to $ 83 on December 16, 2018, new high-speed blockchains with smart contracts and dApps appeared on the market, many began to predict a quick death for Ether. But then there was the IEO hype, TGE, and finally DEFI.
The latest data from Coingecko shows that cumulative trading volumes of crypto exchanges grew by $ 155 billion between July and September, from $ 175.7 billion to $ 330.6 billion.The new total volume represents an 88% increase that Coingecko attributes to the decentralized finance hype ( defi).
The latest report from Coingecko notes that trading volumes on Decentralized Exchanges (DEX) have grown much faster than Centralized Exchanges (CEX) since the start of the third quarter.
For example, in the third quarter, “average monthly DEX trading volumes (out of the top ten) grew by 197%, beating the average volumes of the top ten CEX, which grew by 35%. Despite explosive growth, which also slowed in September, DEX volumes represent only 6% of the total volume of centralized exchanges.
Since September, the total capitalization of DEFI projects has grown from $ 7.8 billion to $ 11 billion. Moreover, the share of the largest DEFI exchange Uniswap makes up a quarter of the total capitalization of the entire DEFI industry, reaching $ 2.63 billion.
Do not forget that 90% of DEFI's capitalization is still in 500 wallets. This means that the DEFI hype is at its very beginning. While maintaining the current growth rates of the DEFI economy, by mid-2021, Uniswap, which has become the largest crypto-exchange, may well increase its share in the crypto industry to 30%.
Where are the regulators looking? Half of the crypt goes into a completely unregulated area without KYC and AML. Moreover, the lion's share of fiat comes to DEFI through the air. So Ethereum is still alive and growing. And even when the DEFI hype subsides, no one can guarantee that some disruptive technology will not appear on the market. And it, with a 90% probability, will work on the ether blockchain.