DeFi is transforming finance and most projects are running on Ethereum. Institutional interest and Ethereum futures are yet more reasons to be upbeat about this future mainstay of the Blockchain/Cryptocurrency space.
The second largest public blockchain network has made huge strides since its launch back in 2015. Now it hovers around its new all-time-highs and the big question isn’t whether Ethereum will be able to scale, but when?
In the meantime, Ethereum continues to transact huge daily trading volumes. $25 billion in daily transactions is five times as much as Binance Coin, the third biggest cryptocurrency by market cap.
Much of that volume will come from DeFi. In spite of the very high gas fees on Ethereum, most projects are continuing to build there. The future does look brighter now given the success with layer 2 solutions that are helping to scale and make Ethereum more efficient.
More interest from institutions in general is also having an effect. A Deloitte report on blockchain trends highlighted that Blockchain was a top five strategic priority for companies. With Ethereum being the most established decentralised blockchain, many will be looking here.
Institutions are also looking for hedges against potential future inflation. A highly successful futures market in Bitcoin has led to corporate interest in Ethereum. Now that the CME Ether futures contract has launched, institutional investors have a fully regulated market so that they can invest in and access the cryptocurrency markets.
Major hedge funds could well enter the ether markets to hedge their exposure from transacting in the spot market. Growth in ether demand can certainly grow here as the traditional market tools become more widely available for Ethereum.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.