Will DeFi challenge ICO-driven Ethereum's all-time high?

Will DeFi's rapidly expanding trend be enough to break Ethereum's previous price record?

Decentralized Finance (DeFi) is growing at a rapid rate and at the center of it all is Ethereum. However, sentiment surrounding the top altcoin in the cryptocurrency industry is extremely low after a prolonged bear market.
Growth in DeFi has brought a positive buzz in altcoin , but experts argue that without another ICO boom, Ethereum will never reach a new high.

Analysts leveraged trading platform based on Bitcoin , PrimeXBT have provided data showing whether the trend of rapid expansion Defi be enough to break the previous record ethereum prices.

Recalling the bullish period of Bitcoin that captured the world's attention

Along with Bitcoin's meteoric rise in public view, the second-largest cryptocurrency, Ethereum, also skyrocketed.

Bitcoin's fear of missing something (FoMO) was the result of the world learning about powerful new cryptocurrency technology and, at the same time, learning about the wealth it generates.

However, Ethereum , the next generation of cryptocurrencies that acts as more than just a currency or store of value, allowed for the creation of new cryptocurrencies. Ethereum offers smart contracts or code-based deals and operations. The platform can run decentralized applications and serves as the foundation for developers to design.

The developers decided to build more and more new cryptocurrencies, launching them in the Ethereum protocol as ERC20 tokens through Initial Coin Offerings (ICO).

ICOs drive Ethereum rise to all-time high alongside Bitcoin

In the initial coin offerings, Ethereum was traded for shiny new tokens that promise to be the next Bitcoin. With Bitcoin's record and meteoric rise, fresh on people's minds, Ethereum prices soared to more than $ 1,400 per ETH token, due to growing demand.

The demand was mainly investors in cryptocurrencies who bought the token and then exchanged it for ICO tokens. Subsequently, the Securities and Exchange Commission intervened and ended the ICOs , considering that many of them were not registered in the securities listings.

As a result, many projects fell ; others were canceled. Initial coin offerings never came back and demand for Ethereum also fell.

The decrease in demand and the increase in supply lead to massive sales and falls in prices. Ethereum lost more than 90% of its value, to drop to just $ 80 at its lowest point.

After two years of a downtrend, Ethereum prepares for a big rally on DeFi's heels

However, in early 2020, Ethereum closed after seven consecutive weeks on the rise. The only other time in history that the asset had such a positive career was before reaching its all-time high.

All signs pointed to an explosion. The rally was fueled by the rapid rise in ETH locked in DeFi apps. A new type of usage for Ethereum had emerged and its user base had grown.

However, the collapse of the Black Thursday market delayed DeFi and ended Ethereum's uptrend.

Now, the markets have cooled down again and Ethereum is flirting once again with a resistance level just as DeFi returns to previous highs.

Are decentralized finance the catalyst for breaking ICO-driven records?

A fiery debate has reached a boiling point in the cryptocurrency community: can DeFi push Ethereum beyond the previous highs set during the ICO boom, or won't this altcoin get a second lightning bolt?

Analysts believe altcoins will never return to those highs, even if Bitcoin breaks its previous high. However, hedge fund managers point to a trillion dollar market cap for Ethereum thanks to the growth of DeFi.

A fund manager claims that while the insane demand that ICOs caused cannot be denied, DeFi is a much more sustainable long-term trend , which will make Ethereum slow but with steady growth.

This achievement would do much more than bring Ethereum to over $ 1,400. With current supply in hand and a market capitalization of $ 1 trillion, it would take the asset well above Ethereum price predictions, at over $ 9,000 per token.

If the pressure from the growth of DeFi is building up below Ethereum, it may be days before a burst of the resistance level. If the second-rank cryptocurrency can break and close above $ 250, $ 500 will be the next stop on the road, potentially at $ 9,000 per ETH.