[View] Ethernet Square can be reached trillions of dollars in market value, but there is a key obstacle

Ethernet Square in a vicious two-year bear market still trapped. Today, Ethernet Square has been hovering in the $ 170 level, which is appearing in mid-2017, when the encryption currency assets rose in December of that year during the ICO prosperity.

Although ETH performance worth mentioning, but Square Ethernet support DeFi agreement has been evolving. DeFi based on the exponential growth of these products, ETH has the potential to release billions of dollars in capital, bringing one trillion US dollars in the market valuation of assets encryption.

DeFi demand for products continues to grow

To the center of the financial (DeFi) allows the user to contract lending by smart digital assets. The encryption currency sub-sector has been concerned in the past two years, the total value in dollars lock (TVL) in excess of $ 796 million, analysts expect this situation will continue into the foreseeable future.

According to the latest posts Lucas Campbell's Fitzner Blockchain Consulting & DeFi Rate establish an Ethernet Square on the block chain has increased the monetary agreement. To build an alternative world of finance these protocols use ETH.

Despite the slump in the price of ETH most of the year, but DeFi continue to grow in 2019. DeFi locked in the total dollar value increased by 140%. In this case the number of locking means that there is no longer legal tender, but get an attractive interest loans or to open an encrypted financial transactions.

Mythos Capital founder of Ryan Sean Adams made a case for Ethernet Square market capitalization of $ 1 trillion. And it all relates to the center of the financial (DeFi).

DeFi refers to decentralized application or platform that allows investors to engage in traditional financial services through the use of Ethernet as collateral Square.

Users can point the way to get loans without the use of a centralized entity, trading derivatives, payment and so on.

Why DeFi Ethernet Square is a potential trillion-dollar valuation key?

A trillion dollars valuation assumptions Ethernet Square is a rather extreme case of mainstream adoption.

For example, Adams (Adams) pointed out that if the Argentine half of the money supply (M1) transferred to an Ethernet Square, you can create a cycle of 13.58 DAI supply.

DAI是一种稳定币，代表MakerDAO生态系统中的美元。在MakerDAO上，用户可以利用以太坊发行贷款或处理付款。

他说：

“尽管今天流通的Dai达到13.58B似乎是一个月球，但考虑到传统资本市场的总价值达数百万亿美元，实际上这只是全球无限制金融体系潜在潜力的一小部分。”

以太坊以某种方式夺取一个主要国家的货币供应的绝大部分不会很快发生。

但是，Adams指出的是，为了使以太坊获得一万亿美元的市值，必须采用这种主流方式。

另一个例子是，ETH占全球衍生品的0.1％。这将在区块链网络的分散生态系统中带来额外的6400亿美元价值。

Adams解释说：“因此，我们假设全球0.1％的衍生品在未来被以太坊的未经许可的金融吸收，或名义合同价值为640B美元。”

对以太坊的乐观的长期前景是，随着时间的推移，有了智能合约和DeFi，它将逐渐开始占一个国家M1供应，全球衍生品市场以及许多其他市场的一小部分。

从长远来看，越来越多的DeFi使用将为主要的DeFi相关操作带来稳定性，从而增加成功的机会。

仍然有一个关键的障碍

目前尚无法达到上述示例中提到的采用水平。

为了使以太坊仅能处理阿根廷M1供应量的51％，以太坊的价格最低必须升至2500美元。

“因此，为了提供可持续的经济带宽以成为阿根廷的主要MoE，ETH的价格必须达到2500美元（固定的ETH流动液体供应量的12.50％）至10,000美元（3.13％）之间的任何位置，”亚当斯

以太坊的价格是否会随着使用和采用水平的提高而增加仍然不清楚。

但是，当单个DeFi平台或应用程序开始占据以太坊所谓的“经济带宽”的很大一部分时，这仅意味着以太坊在市场中流通的数量，这可能会阻碍市场的平衡。