It has been another miserable week for Ethereum as prices continue to erode. New sales have stalled the second largest crypto asset in the world in a minimum of nine months today. Decentralized Finance (DeFi) markets are in an opposite trend with continued growth in the sector.
Ethereum Hits $140
Ethereum is still in a two-year bear market and has made little effort to overcome itself despite the solid fundamentals. Its market capitalization has been reduced by $15 billion. Much more than the $100 billion invested in tokens in early 2018.
A 4% dump on the day has seen ETH prices drop to $140 a few hours earlier. In addition to a brief fall on November 25, the asset has not weakened since the end of March nine months ago.
According to Tradingview.com, Ethereum has fallen below $140 per hour and is maintained in a recession zone with low-low prices regularly.
Ethereum is now very close to its prices since it eliminated all profits in a massive 60% improvement in the last six months at the beginning of the year.
Nothing exceeds the ETH dump, apart from the general slowdown in the encryption markets in particular. In fact, Ethereum looks strong from a technical point of view. Having successfully implemented an Istanbul update that opens to start the next Serenity digital door.
DeFi Don’t Care
Twitter chief Jack Dorsy who defends decentralized social networks is the next free step for Internet-controlled entities. The financial world is also evolving towards a more decentralized nature with DeFi, based largely on the Ethereum ecosystem.
This year, DeFi continues to develop, indifferent to Ethereum’s stagnant performance in terms of price. According to Defipulse.com, the new records have remodeled, with the total value of ETH locked in DeFi hitting 4.6 million.
The amount of real ETH on decentralized financial platforms also reached 2.73 million this week. Which is equivalent to 2.5% of the total supply.
In terms of dollars, new records are also being created. But this is largely due to the drop in Ethereum prices.
As DeFi grows, ETH will be used and blocked on interest-bearing platforms instead of daily trading in open markets. This will reduce the volatility of overtime and increase the value of the token.
Combine this premise with the transition to a consensus test model for next year. It won’t be long before Ethereum leaves its two-year bear market.