Since June, the number of applications and pledged tokens in the DeFi field has ushered in explosive growth. However, in view of its development speed and existing problems, some investors in the market have expressed concerns about the future development of DeFi.
Summary
Summary
Topic: How long can DeFi continue to be popular? Since June, DeFi has ushered in a blowout development. The total market value of DeFi tokens and the total lock-up value of DeFi have skyrocketed, igniting market sentiment. But at present, DeFi still has problems such as poor security of smart contracts, poor scalability, and high Gas fees. The advent of ETH 2.0 may boost the development of DeFi.
Market: ETH has skyrocketed, and search interest has soared. This week, the total market value of digital tokens was US$342.11 billion, an increase of US$49.35 billion or about 16.9% compared to last week; the average daily trading volume was US$89.41 billion, an increase of 60.1% from last week, and the average daily turnover rate was 27.5% , up 7.9% from last week. The current price of BTC is US$11,323.47, with a weekly increase of 18.7%, and an average daily trading volume of US$24.6 billion. The current price of ETH is 345.55 US dollars, a weekly increase of 23.8%, and the average daily trading volume is 12.22 billion US dollars. This week, the BTC balance on the exchange was 2.391 million, an increase of 32,000 from last week. The balance of ETH on the exchange was 13.735 million, an increase of 9765 from last week. Among the BICS secondary industries, the proportion of the banking service industry has increased significantly.
Industry: Ethereum 2.0 is about to launch. The launch progress of the Ethereum 2.0 testnet has completed 100%; Filecoin official: launch the testnet reward plan on August 12 at the latest; Ant Group released the first blockchain self-developed hardware and software all-in-one machine in China.
Risk warning: regulatory policy risk, market trend risk
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1 How long can DeFi continue to be popular?
1.1 DeFi blowout development
In addition to the market value of DeFi tokens, the total lock-up value of DeFi has also increased significantly in the past two months, with an increase of more than 300% so far.
The development of DeFi has driven market sentiment. Since June, the number of applications and pledged tokens in the DeFi field has ushered in explosive growth. The development of the DeFi ecosystem has injected fresh blood and energy into the lending platform, and a series of follow-up DeFi concept projects have also attracted a large amount of new funds to enter the market. The blowout development of DeFi has ignited market sentiment.
However, in view of the explosive growth of DeFi and a series of problems, some investors in the market expressed concerns about the future development of DeFi.
1.2 Problems in DeFi
First of all, DeFi has the security problem of smart contracts.
DeFi smart contracts are hacked from time to time, and their security has been questioned. In April of this year, Uniswap and Lendf.me were attacked one after another, putting the issue of DeFi security in front of market investors. At present, the development time of DeFi is relatively short, and it has not yet experienced a long-term security attack and defense test.
Second, DeFi is less scalable.
At present, when large-scale transactions occur, the ETH public chain is extremely prone to congestion, slow transaction speed, poor user experience, and even property losses. For example, in the 3.12 black swan event, some mortgage positions need to be redeemed through on-chain transactions, but when the market is in a period of rapid decline, failure to complete transactions in time may lead to liquidation of positions and cause losses.
Third, Gas fees are too high.
The advent of ETH 2.0 may boost the development of DeFi. DeFi has become a hot spot because after more than two years of exploration, it has found the fit between the product and the market, and has made great progress in terms of locked-in assets and transaction volume. After solving some of the current problems, DeFi may become a long-term development trend.
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2 Market: ETH soars, searches soar
2.1 The overall market: the market is going up
This week, the ChaiNext Digital Asset 100 Index closed at 1061.27 points, up 18.4%. The ChaiNext Digital Asset 100X Index closed at 2966.69 points, up 17.5%.
This week, the total market value of digital tokens was US$342.11 billion, an increase of US$49.35 billion or about 16.9% compared to last week.
The average daily turnover of the digital token market was 89.41 billion US dollars, an increase of 60.1% from last week, and the average daily turnover rate was 27.5%, an increase of 7.9% from last week.
The market value of USDT is 9.99 billion US dollars, and the premium of USDT relative to the US dollar remains basically unchanged.
2.2 Core pass: ETH leads the crypto market
2.2 Core pass: ETH leads the crypto market
The current price of BTC is $11,323.47, with a weekly increase of 18.7% and a monthly increase of 22.7%. The average daily turnover is 24.6 billion US dollars, and the average daily turnover rate is 12.4%.
The current price of ETH is $345.55, with a weekly increase of 23.8% and a monthly increase of 49.5%. The average daily turnover is 12.22 billion US dollars, and the average daily turnover rate is 34%.
This week, the volatility of mainstream digital tokens has risen slightly, and the price fluctuations have become more severe than last week. The monthly volatility of BTC increased by 5.9% from last week; the monthly volatility of ETH increased by 2.3% from last week.
2.3 BICS industry: The proportion of the banking service industry has increased significantly
Among the top five BICS (Blockchain Industry Classification Standard, Blockchain Industry Classification Standard) secondary industries by market value, the proportion of the leisure and entertainment industry has increased significantly; the proportion of the market value of the project service industry has decreased significantly.
This week, the BICS secondary industry with a relatively obvious increase in the number of tokens is banking services, payment and settlement, and the decline is more obvious with media content and stable tokens.
2.4 Market view: The market stands at a high level, reappearing the "pin-in" market
This week, ETH continued its surge last week, with a weekly increase of more than 20%, and BTC once again stood at $11,000, and the market sentiment was high. At noon on August 2, there was a sudden dive in the market, which plummeted by US$1,000 within 5 minutes, and the BTC contract liquidation exceeded US$700 million in one hour. Subsequently, BTC returned to the $11,300 line. The bullish sentiment in the market is high, and the market may fluctuate upward.
Long-term currency holders may consider regular investment or bargain hunting. In the long run, BTC has a high investment value, and it is still a good time to invest in digital assets such as BTC. Long-term currency holders may consider regular investment or bargain hunting.
3Output and popularity: BTC and ETH computing power rise
The computing power of BTC and ETH rose. The mining difficulty of BTC this week is 16.85T, a decrease of 0.5T from last week, and the daily average computing power is 124.78EH/s, an increase of 5.54EH/s from last week; the mining difficulty of ETH this week is 2394.73, a decrease of 57.41 from last week, The daily average computing power is 195.1TH/S, an increase of 6.3TH/S from last week.
This week, according to Google Trends, the search popularity of the term Bitcoin is 17, and that of Ethereum is 30.
4 Industry news: Ethereum 2.0 is about to launch
4.1 The progress of Ethereum 2.0 testnet launch has been completed 100%
On July 31, according to the official data of Ethereum, as of now, 527,584 ETHs have been pledged to the Ethereum 2.0 testnet. This means that the startup progress has completed 100%. Earlier on July 23, Ethereum officially announced that the multi-client test network Medalla will start at 21:00 on August 4. And getting started requires 16,384 validators and a deposit of 524,288 ETH. If the number of validators does not reach the minimum of 16384 at 21:00 on August 2, the launch will be postponed.
4.2 Filecoin Official: Launch the Testnet Reward Program on August 12 at the latest
At 19:00 on July 31, 2020, the official released the latest news on the Slack channel: Although the testnet reward plan may be delayed, the reason is that it is hoped that more capable miners can meet the corresponding standards, that is, most large miners will Can achieve more than 75% transaction success rate. However, if the majority of large miners fail to meet the above standards, the official will still open the testnet reward program for qualified miners on August 12.
Note:
Note:
Due to some reasons, some nouns in this article are not very accurate, mainly such as: general certificate, digital certificate, digital currency, currency, token, crowdsale, etc. If readers have any questions, they can call or write to discuss together.
Due to some reasons, some nouns in this article are not very accurate, mainly such as: general certificate, digital certificate, digital currency, currency, token, crowdsale, etc. If readers have any questions, they can call or write to discuss together.
