The second quarter of 2020 may become a turning point in the development of decentralized applications (dapps) on Ethereum. According to the analysis of the Dapp market report released by Dapp.com in the second quarter of 2020, based on the dapp developed by Ethereum, a single The cumulative total of active users in the quarter exceeded 1 million, with DeFi growing the fastest.
On July 21, the total market value of DeFi exceeded the $10 billion mark. In just two days, the market value increased by another 1.5 billion to reach $11.5 billion, an amazing growth rate. Since the DeFi wallet came out in 2019, its user usage and growth rate are far ahead of other wallets. After Compound launched liquid mining in June, it detonated the DeFi market, causing the number of users and transactions of DeFi wallets to increase sharply. So far, the number of wallet downloads has exceeded 5000.
The reason why DeFi has attracted the attention of investors in a short period of time is that it is based on Ethereum development and has a strong consensus; on the other hand, it solves the pain points of lending and asset management in the digital currency field.
In terms of digital asset lending, in addition to DeFi, Aave has also received high attention from investors recently. It is a money market protocol developed based on Ethereum. Similar to Compound, lenders deposit assets in shared contract pools as liquidity funds, and borrowers can freely withdraw assets from these contract pools through overcollateralization, and there is no time limit. The floating interest rate paid to the borrower is calculated based on the utilization rate of the borrowed funds in a certain period of time, and the amount of assets that the lender can withdraw depends on the balance of the remaining unborrowed assets in each contract pool.
Since the termination of the peer-to-peer lending platform ETHLend, Aave's users have grown at an alarming rate: outstanding debt* ($33 million) and asset management ($275 million) have increased by 93% and 81% month-on-month, respectively. So far, it supports a total of 25 asset lending, while Compound has only 9 types and MakerDAO has only 6 types. On July 13, Aave's number of independent borrowers has exceeded Compound.
The rapid development of Aave is inseparable from its rapid iterative products. It has successively increased lightning loans, "fixed-rates" ('fixed-rates'), and borrowed Uniswap LP shares as collateral. And recently, it is designing a system called trust-line, which can be superimposed on the Aave protocol to provide a new product without mortgages. After the design concept of unsecured loans was put forward, it attracted the attention of the capital market. The Aave team recently announced that it has received strategic investment from Framework Ventures and Three Arrows Capital. This major benefit will not only promote the rapid development of Aave, but will also help the price of Ethereum continue to rise.
The day before yesterday, Ethereum’s beacon chain client Nimbus officially launched a security assessment. Coupled with the good news that the market value of Defi exceeded $11.5 billion and Aave users surpassed Compound, Ethereum today rose by 9 points. Lucian, the chief analyst of BitOffer Exchange, believes that this is just the beginning of Ethereum's rise, and it will rise more than 10 times in the future. Now is the best time to invest in Ethereum.
However, buying Ethereum spot is not as good as buying the Ethereum ETF fund launched by BitOffer, starting with a minimum of 3 times the income, and also adding an intelligent dynamic position adjustment mechanism and fund compound interest calculation, and the return can reach up to 17 times. If the price of Ethereum successfully increases by 10 times, the Ethereum ETF fund will rise by as much as 170 times. That is to say, invest 10,000 US dollars now, and after Ethereum rises 10 times in the future, your ETF fund assets will become 1.7 million US dollars, rich and poor, just in a thought!