–
The progress of Decentralized Finance (DeFi), aka decentralized finance, is said to be the cause of the soaring price of the crypto asset Ether (ETH). Large cap crypto assets after Bitcoin broke Rp7.13 million per ETH in the first week of September 2020.
“This is the highest price for ETH in the last two years. This price increase is due to the sector DeFi who are being loved, “said Oscar Darmawan, CEO of Indodax, this afternoon.
ETH price reached IDR7.13 million Indodax, on August 2, 2020. The ETH price increase was almost 200 percent since March 2020. At that time, the ETH price was only IDR 2.7 million.
According to Oscar, the demand for ETH has increased dramatically, because DeFi is being loved. Massive demand for ETH made the price also increase drastically.
“DeFi is driving the demand for ETH, so, the price also increases drastically, because most of the DeFi network is built on the Ethereum blockchain (having native asset Ether [ETH]-Red) which has features smart contract the good one. In addition, a number of DeFi-related tokens are also created and issued on the Ethereum blockchain, ”he said.
DeFi is mostly an application on the Ethereum blockchain network. A number of DeFi users are connected peer-peer. Users can get funds in the form of crypto assets, for example, DAI or USDT by collateralizing, for example Bitcoin (BTC) or Ether (ETH).
Oscar said, in early 2020 people had never heard of DeFi. Currently DeFi is being loved. According to him, the blockchain ecosystem and crypto assets will continue to develop in order to create a positive climate. [red]