Home Finance News Ethereum (ETH) Developers Making a Real Breakthrough Disruption Possible in DeFi

Ethereum (ETH) Developers Making a Real Breakthrough Disruption Possible in DeFi

Ethereum Defi

Mainstream interest is slowly increasing after the influx of institutional investors in to the cryptocurrency space.  This is also true about Ethereum.

Institutional investors is an entity backed by several individual investors who pool their money to buy securities, real property and make other kinds of investment.  These investments are used to create loans.  For clarity, institutional investors is made up of banks, pension funds, hedge funds, REITs, investment advisors, credit unions, insurance companies, endowments, and mutual funds.

Institutional investors are mostly involved in trading in the financial markets by lending money or investing in real estate and several other type of securities and assets.  Now, it is possible to see institutional investors are putting their money in the cryptocurrency space, particularly to make best profits in Yield Farming and DeFi.  They employ their own risk management strategy to neutralize the risk.

DeFi is the term that is used to denote the different kinds of financial applications in the cryptocurrency space.  The strength of the financial applications and the process delivered entirely is disrupting to the financial intermediaries.

The documentation of the history of the transactions is very important in any kind of financial process.  Blockchain technology by virtue of being an immutable distributed ledger makes it possible for clear documentation of the history of the transactions.  The reliability of the documentation process makes it trustworthy for institutional investors to step in to the blockchain space.

The speed with which funding can reach those who are looking for money whether for business development or other processes, gets delayed due to the middlemen and their costs in a traditional system.

The bulk of the experiments and developments in several blockchain ecosystems is focused on improving speed, scalability and affordability in recording the transaction process. It takes the commitment of stakers, validators, and developers in advancing the evolution of the now existing technology, to truly be able to make a true break through disruption possible.

Ethereum (ETH) Locked in Network

There is no denying that there is an increase in the numbers of investors who are mainstream taking to the Ethereum network.  However, due to the continued growth of new users on Eth 2.0 a noteworthy sum of Ethereum supply is getting locked away and therefore is getting to be unusable on the original Ethereum blockchain.  It is also important to note that about 2.4% of all the ETH in circulation are now locked in one form or the other from Eth 2.0.  With more investors, the ETH locked in the network will be as high as 30% per experienced investors.

Read more about:
Share on

dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

Crypto newsletter

Get the latest Crypto & Blockchain News in your inbox.

By clicking Subscribe, you agree to our Privacy Policy.