Decentralized Finance is still in the spotlight on the Ethereum ecosystem as money continues to go into DeFi at an insane rate.
There is a major catalyst coming that will be a massive boost to the already booming decentralized finance ecosystem as well as the entire Ethereum ecosystem.
The chart above illustrates the surge of decentralized finance and also the continual buying pressure that has been removing Ethereum from centralized exchanges for months. This chart shows the DeFi flip, the point at which Ethereum was locked in decentralized smart contracts that were being held on exchanges.
All this happened late last year but since that time, the charts have continued to diverge in a dramatic sequence.
At the moment, less than 13 percent of all Ethereum is sitting on exchanges and over 21 percent of ethereum is locked up in smart contracts. This means that people are using this to do stuff like yield farming, collateralization loans, and so on. This also shows that people are not only holding their ethereum on exchanges and waiting for the value to rise but they are using ethereum in DeFi.
Ethereum PoolTogether now has about 6,000 users making it one of the most decentralized finance protocols. It also has 134 million dollars in total value locked on the platform.
In the idea of PoolTogether, you simply deposit your dollar stable coins e.g $50 worth of USDC stable coins, in exchange for those 50 dollars you will get 50 tickets, and then the system takes the dollars and lends all the money to DeFi platforms like Aave, compound earning and once a week, they choose a winner for the entire money and whoever wins gets all the interest for the week.
The good thing about PoolTogether is that you never lose and you can withdraw the money you put in whenever you want by redeeming tickets. PoolTogether is a no-lose lottery. You can play the lottery with zero chance of losing with the potential to get huge prices and as a bonus, you get paid out in their governance tokens at the rate of 42 percent APY.
In other news, StarkWare, one of the Layer Two scaling solutions for ethereum is working with Immutable X. They have just winter 600,000 NFTs on Ethereum Layer Two with each NFT costing less than a penny. This is very good because minting NFTs on Ethereum is very expensive.
The price reduction will bring NFT fomo and availability to the next level.
