According to a report shared by the blockchain analytics firm, IntoTheBlock, the second-largest largest cryptocurrency by market capitalization, Ethereum (ETH), will likely continue its meteoric upside trend, despite rejecting its record high area some hours ago.
The number one reason on the list of the blockchain firm is the growth of the decentralized finance (DeFi) industry.
According to the report from IntoTheBlock, the adoption and development of DeFi would serve as a catalyst to keep the growth momentum of Ethereum (ETH).
Decentralized finance (DeFi) applications are dapps that offer financial services without the need for any third-party or intermediary such as banks.
Many are also into yield farming that makes them lend their crypto assets to other projects and reap their profits. Although the first DeFi emerged in 2017, the industry went full-scale with a notable success in 2020.
As it is widely known, virtually all the DeFi protocols are powered by Ethereum blockchain, and the most popular metric to monitor the growth of DeFi is known as Total Value Locked (TVL), which represents the overall amount of US Dollar deposited into smart contracts that power DeFi applications.
A year ago, TVL amounted to relatively $840 million. A few days ago, it hit a major peak of a $25 billion, which represents a 29x rise over a 12-month period.
The number two reason stated by the blockchain firm is the expansion of Ethereum network adoption.
Obviously, the magnificent growth and popularity of DeFi in 2020 greatly impacted the growth of Ethereum (ETH). There has been an increase in the number of transactions on the Ethereum network.
According to the report released by IntoTheBlock, over the past several days, 1.17 million daily transactions have been noticed on the Ethereum network.
This has also impacted the growth of Ethereum daily active wallets, which stands at 550,000 per day average, representing 100% growth compared to the number recorded back in January 2020.
The last reason stated by the blockchain analytics firm, IntoTheBlock, is the decrease in number of Ethereum (ETH) supply on crypto exchanges.
The IntoTheBlock team stated that the decrease in the ETH supply on crypto exchanges lately is very important for the cryptocurrency to continue its exponential growth.