Ethereum falls 8% after exploding to a new high always after $ 1,430, still outperforming Bitcoin earnings of 26% so far | Currency News Financial and Business News

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  • Ethereum fell 7% on Wednesday after hitting a new all-time high of over $ 1,430.
  • Directly linked to its explosive growth is the increase in projects built on Decentralized Funding, or DeFi.
  • Ethereum users receive over 4% in annual interest, while traditional banks offer less than 0.5%.
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Ethereum fell 8% on Wednesday after shooting past $ 1,430 a day earlier, hitting an all-time high for the cryptocurrency that powers the world’s largest smart contract platform.

Its price fell to around $ 1,265 at 1150 GMT, pulling back the previous day’s record high.

Ether, the native cryptocurrency of the Ethereum blockchain network, has soared 33% so far to reach its latest peak, just a couple of weeks after its Bitcoin crypto cousin reached a new high near $ 42,000.

Ethereum’s earnings clearly show that it has outperformed Bitcoin’s 26% rally so far this year in their respective US dollar pairs. Its positive momentum sets out how projects built on decentralized funding, more commonly known as DeFi, create a more scalable infrastructure for smart contracts rather than relying on turnarounds, swaps or banks.

The cryptocurrency has always been a lesser known opponent of Bitcoin for a mainstream audience, according to Founder and CEO Samantha Yap at YAP Global. But a growing awareness and understanding of what it means shows that it could be adopted gradually as the DeFi industry grows.

That the world’s second-largest cryptocurrency through market capitalization has reached a new peak marks DeFi’s start “consuming traditional finance,” said Hsuan-Ting CEO of Furucombo, DeFi’s silver lego application. “More and more people are adopting it as a sign of a great future for the industry regardless of whether people are using ETH to pay for something or just getting it to capture the value of the network,” he said.

More than $ 25 billion worth of crypto assets are locked into DeFi applications built on Ethereum over 2020, according to DeFi Pulse. The sector now offers loans, synthetic stocks, interest-earning assets, exchanges, derivatives, options and credit systems.

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Ethereum users can already receive more than 4% in annual interest, while traditional banks offer interest below 0.5%, as well as exposure to various derivatives products that have a global market due to the openness of the public blockchain infrastructure, according. Sergey Nazarov, co-founder of the world’s largest DeFi Chainlink project.

“When you consider the 10X growth in DeFi’s market size, the consistently higher rates of return of DeFi financial products compared to banks and the inherently global nature of DeFi financial products, together with the depreciation of traditional assets through high inflation and unverified currency printing., anyone can start to see that DeFi is where the next flight of security will take place and is actually one of the current forces driving the adoption of cryptocurrencies like Bitcoin and Ethereum today, “he said Nazarov.

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