DeFi Markets Will Launch Ethereum (ETH) To A Trillion-Dollar Valuation: Analysts

Ethereum is still knee-deep in a vicious two-year bear market. Today, ETH has been hovering at $170 levels which were last seen in mid-2017 before crypto assets skyrocketed in December of that year during the ICO boom.

While the performance of ETH is nothing to write home about, DeFi protocols supported by ethereum have been on a roll. And based on the exponential growth of these DeFi products, ETH has the potential to unlock billions of dollars in capital, ushering in a trillion-dollar market valuation for the crypto asset.

Growing Demand For DeFi Products

Decentralized Finance (DeFi) enables users to lend or borrow digital assets through smart contracts. This cryptocurrency sub-sector has been gaining traction over the past two years, registering more than $750 million in total value locked (TVL) in USD and analysts expect this to continue into the foreseeable future.

According to a recent post by Lucas Campbell of Fitzner Blockchain Consulting & DeFi Rate, there has been an increase in money protocols built on the ethereum blockchain. These protocols are utilizing ETH to build an alternative world of finance.