Ethereum DeFi ecosystem successfully recovers after March crash

Jeffrey Hancock
2 min readJun 3, 2020
Ethereum DeFi ecosystem took a hit after a crash of crypto market in March. But DeFi managed to survive and got back in business.

The market for DeFi decentralized applications based on Ethereum is recovering its positions. According to many experts, this ecosystem is one of the key growth drivers of the largest altcoins (ETH).

According to the DeFi Pulse resource, the value of all digital assets within the ecosystem is close to $1 billion ($953 million).

It should be noted that as a result of the March collapse, which went down in history as “Black Thursday”, the DeFi market capitalization fell to $500 million. This was expected, as the market decline on March 12 led to the weakening of all cryptocurrencies. Bitcoin, for example, fell to an annual low.

The lion’s share of capital on the DeFi market is concentrated in Marker, Synthetix and Compound projects (about $750m). Many analysts believe that the increased capitalization of the decentralized financing market will have a positive impact on the prospects of ETH.

Recently MarkerDAO founder Rune Christinsen noted that through DeFi Ethereum will be able to raise additional capital.

“4 million Dai was just minted with WBTC in a single transaction. This really showcases the latent demand for non-ETH assets, and it’s the beginning of a broader trend of DeFi acting as an economic vacuum that will eventually attract almost all value to the Ethereum blockchain.”

Founder of Messari Ryan Selkis has a similar view. In his opinion, ETH can not only repeat the 2017–2018 rally, but also show more tangible results through the DeFi ecosystem.

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Jeffrey Hancock

Blockchain enthusiast developer and writer. I love video games, blockchain and the hot symbiosis of these two worlds.