According Brain Norton the Chief Operating Officer of MyEtherWallet, Ethereum's original and most trusted wallet interface that, Ethereum price could be way above $2000 in 2021 and he talked about the future of DeFi.
Norton has said that, "Bitcoin was designed for the purposes of transferring Bitcoin. The Ethereum project was designed more for the creation of building applications - building a technological ecosystem on top of it beyond simple value transfer. So, Ethereum works with some thing called Smart Contracts and these can power different types of applications such as popular DeFi applications (Decentralized Finance) this allows trustless, informationless on the Ethereum network.
There are different types of DeFi products that are available on Ethereum - Automated Market Makers, Lending and Borrowing Protocols, these protocols worked in a way that they worked in liquidity pools. User often contribute to assets using this liquidity pools in exchange in interests bearing tokens, so they earn interests on their contributions. In addition to that, the yield farming was sort of introduced this year which is an interesting addition to seeking way on Ethereum in which governance tokens are issued to liquidity providers, those tokens while normally don't have monetary value created a demand for these tokens. Have seen an increase in value in secondary markets."
Norton continues to say, "This allows you to vote on major changes to any of these DeFi protocols and some of these are quite valuable because we have seen an exponential increase in DeFi engagement over the last year. In 2020 last have had a billion dollars of total value locked across the entire ecosystem of about 12 billion dollars. A small fraction of the overall financial market but a huge growth just in a short period of time. One of the things we can look where Bitcoin and Ethereum sit in the overall ecosystem is that Bitcoin is primarily viewed as a store of value. Now, the Ethereum has a lot of store of values quality to it, but it also serves to run the applications across the Ethereum network."
We are seeing the beginning of Ethereum's growth. With the launch of The Beacon Chain in December which is the first move towards Ethereum's proof-of-stake we've seen incredible interests, that shows an incredible amount of investor confidence in the long term viability of the Ethereum blockchain and because of the fact that overwhelmingly the developer community is behind Ethereum, the DeFi activity is behind Ethereum we are only just beginning to see the start of long term growth for this ecosystem."