While the market seems to come out of its bear phase – Bitcoin is finally holding above the $ 4000 mark – the push for a permanent price increase depends on usability and fundamentals. For Ethereum, this means a solid network of apps and platforms that use Ethereum. Crypto investors can become confident, as it seems that the demand for Ethereum and other digital resources is constantly growing on some platforms.
Responsible for research on digital money at TradeBlock, John Todaro, published a tweet that showed Ether's request on platforms such as Compound Finance and aimed at this growth in the demand for Ethereum on such platforms, as well as a potential decline in natural supply as instigators for an increase in prices. TradeBlock provides institutional trading tools for cryptocurrency.
The graph below shows an increase in the amount of Ether blocked since November.
In the last 3 mos, apply for $ ETH for guarantees on DeFi platforms $ MKR, @compoundfinance, etc. it was ~ 10,000 ETH every day. The new supply of ETH every day is ~ 19,000 ETH. The rate of supply will soon be reduced to ~ 12,000. The natural demand for ETH will soon outweigh the natural supply. pic.twitter.com/GlEXHyzAfc
– John Todaro (@ JohnTodaro1) January 3, 2019
The increase in the demand for Ether on such platforms should not be surprising, given that the number of apps and cases of use of Ethereum is growing. The the number of decentralized applications is increasing, is increased support would naturally increase the price of the token.
The general increase in the purchase of enthusiasm is also hinted at in a cryptographic publication report The block, which showed that the pressure of buying on the over-the-counter trading desks of Wall Street (OTC) has increased since the start of the new year. History also shows an increase in altcoin buyers and stablecoins over it Circle OTC trading counters at the beginning of 2019.
The decentralized movement of finance is strong
Compound finance is a protocol built for the Ethereum blockchain that allows users to provide digital resources, for which they earn interests. The protocol individually regulates the interest rate for each activity, based on the demand for the particular activity. For example, the DAI token now has an annual offer percentage (APR) of 3.13%, while the APR of the demand is 9.92%.
Launched in September 2018, Compound Finance says it is on a mission to allow users to get interest in their long-term investments. Both Compound Finance and MakerDAO are members of the DeFi movement, a consortium of various blockchain entities that are working to bring decentralized funding to the masses.
Other members of the DeFi movement include dy / dx, a decentralized protocol for margin trading and Ethereum derivatives; Kyber Network; CDx, a protocol for credit default swap tokenized; Coinbase with his mobile wallet; and many others.
The movement is governed by an accession to interoperability and open source, accessibility and financial inclusion and financial transparency.