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Decentralized finance continues its growing trend – Crypto weekly update

Published: 13. 05. 2021 · Author: Daniel Mitrovsky

This week, the total market capitalization exceeded 1.90 trillion EUR. Decrease at the 7-day interval is 3 %. Bitcoin decreased by 10.8 % during the week to a current value of over than 42,000 EUR. Bitcoin dominance is 41.3 %.

Source: Coinmarketcap

Decentralised finance on the rise

The decentralised finance sector continues to grow and is attracting increasing investor interest. ConsenSys Codefi's latest report focused on trends in the decentralised finance sector shows the increasing number of active addresses and the multiple growth of stablecoins in the DeFi sector.

Currently, approximately 175 million unique addresses are active in the Ethereum network, while roughly 1.75 million addresses are also active in the DeFi sector. Although DeFi users represents only 1% of the total number of addresses so far, their number is increasing every day and totally increased by more than 50% in the first quarter of 2021.

The growth of decentralised finances was also reflected in the growth of stablecoins on Ethereum. Stablecoins are the main medium of exchange and can be used in DeFi applications to earn yield through lending, providing liquidity, or as collateral for a loan.

According to the latest data, the amount of stablecoins in the DeFi sector increased sevenfold year-on-year from $5.5 billion (€4.55 billion) at the end of the first quarter of 2020 to $37.4 billion (€30.93 billion) at the end of the first quarter of 2021.

Uses for stablecoins are also extending to traditional finance. For example, VISA announced in March that transactions on its network could be settled through stablecoin USDC. Source

Zuckerberg and Bitcoin?

Mark Zuckerberg, CEO of Facebook, has riled excitement across the crypto community after sharing a photo to social media Facebook to announce two of his pet goats have been named “Max” and “Bitcoin”.

Crypto Twitter has been whipped into frenzied speculation in response to the goats’ names, with analyst LilMoonLambo tweeting to their 97,000 followers: “You have two weeks to accumulate as much $BTC as you can before Mark Zuckerberg announces that he and Facebook have purchased Bitcoin during their annual shareholders meeting... The pump will be glorious.”

On the other hand, several Twitter users think it's just an innocent prank and Zuckerberg may simply be trying to poke fun and stir up a reaction on social media amid the recently surging popularity of crypto assets.

Last month, rumors circulated that Facebook would reveal Bitcoin holdings on its balance sheet in its Q1 earnings report. However, the April 28 report revealed that the company does not hold any crypto assets. Source

Ether breaks $500-billion market cap

Ethereum is doing really well in recent weeks and it has reached another significant milestone this week. Ethereum price hits new all-time high of $4,346 (nearly €3600) on Wednesday morning, surpassing Ethereum's market capitalization of $500 billion (€413.5 billion).

After significant exponential growth, Ethereum's market capitalization is now higher than the market cap of companies like VISA or JP Morgan. Ethereum is historically only the second cryptocurrency which surpassed the $500 billion milestone for total market capitalization.

While Bitcoin took nearly 12 years to cross this milestone, Ethereum managed to overcome it in just 5 years and 10 months. Source

EBay allowed the sale of NFT

In the last crypto weekly update we were informed about EBay's initiative to become a part of the NFT space. Not a week has passed and new information has come to light that EBay has already officially launched NFT trading on its platform.

On Tuesday, the company officially announced the launch of trading of NFT tokens (Non-fungible token), which are used for example for digital art or various types of collectibles. EBay has become the first ever e-commerce company to offer blockchain-based NFT virtual assets. Source

Grayscale becomes “crypto sponsor” of New York Giants

According to an official press release, Grayscale Investments became the first "crypto sponsor" of American football team New York Giants. As part of this arrangement, will act as a presenting sponsor of the Giants Foundation annual golf outing. The Giants Foundation provides financial assistance to organizations that are helping to solve important community issues in the tri-state area.

Additionally, Grayscale will become a presenting home game sponsor and a supporting sponsor of the Giants’ training camp. The digital asset manager will also host educational seminars on cryptocurrencies for the teams’ personnel annually. Source

Coinbase at the top of the App Store

Coinbase's mobile app has become the most popular app in the Apple App Store. According to the Top Charts list, the Coinbase mobile app overtakes apps such as TikTok, Facebook, Instagram or the Robinhood trading app in the rankings.

Coinbase’s app had been near the top of Apple’s App Store last month, often behind Robinhood in the number one position. However, since the company began trading its stock on the Nasdaq in April, attention from the public seems to have risen, potentially leading to an increase in the number of desktop and mobile users. Source

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