A review of the hot spots in the encryption industry in 2020
Editor's Note: This article comes fromCrypto Valley Live (ID: cryptovalley)Editor's Note: This article comes from
Crypto Valley Live (ID: cryptovalley)
Crypto Valley Live (ID: cryptovalley)
This year will go down in history as a year in which crypto activity made headlines across the globe. From the decline in the price of digital assets to the volatility of the encryption industry. Another major breakout was the record-breaking rise in market capitalization of the DeFi sector to $9 billion, followed by a slow rise.
Things are always going to go through rapid changes in the world of digital assets, as significant activity by high-net-worth clients and investors can affect the performance of assets. A case in point is investors flocking to the booming DeFi space, where projects have gathered enormous momentum and made it into the headlines.
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Last month was one of the busiest for Ethereum as it saw the emergence of DeFi projects on the blockchain platform. Investors trying to avoid missing out due to DeFi projects need to get their transactions approved in a timely manner. This has led to a continuous increase in Ethereum Gas fees. Uniswap records show that as of Sept. 1, the average transaction fee on Ethereum has reached around $15.
Although Ethereum miners are the biggest winners in this case, it is also true for investors that they will be "turned out" due to the high gas fees required to transact on the blockchain. have nothing to say. It should be noted that Ethereum's gas fee is a unit of measurement for the transaction fee required to confirm a transaction on the blockchain.
DeFi craze
Since late last year, DeFi has become one of the key trends in the crypto industry. In the past 6 months, this field has experienced rapid growth. Recently, the net value locked in DeFi reached a new height of 10 billion US dollars, creating a new milestone. Many companies operating in the blockchain space have launched their DeFi products.
In addition, popular protocols such as Compound, Balancer, Curve, etc. have brought a new wave of opportunities for crypto investors looking for rates of return under different risks, liquidity, and cheap modern financial instruments. In addition, as institutional capital enters the field of digital assets, in addition to the growth of the user base, there will be further adoption of DeFi soon.
The Economic Crisis and the Application of Encryption Technology
The coronavirus pandemic has caused massive disruption and closures for many companies, and it has also caused a rethinking of attitudes towards many things in life. So previously uncommon things like crypto payments or remote work are now critical, and they seem likely to stay that way even after COVID-19 is over.
Also, the time is ripe to move away from cash and move closer to a new life. Fortunately, the field of blockchain has blossomed, as the new era calls for more experts who specialize in the field of distributed ledger technology. In our modern world, applications that interact with the crypto world have seen massive improvements and become easier to use.
Ethereum 2.0 released
Once again, 2020 brought another notable achievement with Ethereum announcing that they are working on plans to launch an Ethereum 2.0. Ethereum 2.0 is known as the second iteration of the previous blockchain used by Ethereum, and the new blockchain will provide users with a stake-aligned PoS consensus instead of PoW.
Ethereum 2.0 will be able to handle higher computing power as it will be able to confirm more transactions in seconds than previous blockchains. Currently, a phased rollout is underway, but a full rollout is not expected anytime soon, with the Ethereum team hinting at a launch date of 2020.
The popularity of YFI tokens
When the crypto community hopes that mainstream currencies will appreciate strongly, the Ethereum DeFi project YFI steals the limelight. When the token launched on July 18, it sold for just $32, but it has now crossed the $11,000 mark in just one month.
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