The entire crypto space has seen extreme volatility since the start of the week. The global market cap slips to $2.46 trillion with 6.42% negative gains round the clock. The market leaders Bitcoin and Ethereum seem to have run out of gas as the coins undergo a correction. Besides, meme coin SHIB Price loomed as a top gainer with over 94.31% gains over the past 7 days.
Meanwhile, the total DeFi market cap has risen to $142.54 billion with 62.85% profits in 24 hours. While Ethereum’s price has stalled after the massive bull run. There seems to be a correlation between the bull cycles of the star altcoin and DeFi tokens based on ERC-20.
Ethereum and DeFi: Catalysts to Each Other!
In comparison to Ethereum’s price momentum since the start of 2021, the star altcoin has soared beyond 800%. Speculations assume that the rise in vogue of the DeFi tokens helped to uplift the coin’s price rally. Eventually, reports say that all the major tokens built on ERC-20 experienced massive gains of over 100% corresponding to the surge of the second most valued asset.
Interestingly, data from DeFi pulse highlights that in 2020, Total Value Locked (TVL) in DeFi surged from $5 to $25 billion. While, during 2021, TVL has increased 4 folds rising from $25B to $104.018B at the press time. Meanwhile, the number of active addresses on the Ethereum network has soared from 250k to 848.57k in the same time frame. Certainly, the analytics highlights how both could act as catalysts to each other. The above-mentioned analytics highlights the probable cash flow of Ethereum to DeFi tokens and vice-versa.
Ethereum Merger is Fast Approaching!!
The platform has scheduled a launch of the Altair upgrade to Beacon Chain on October 27th, 2021. The upgrade is a warm-up for the upcoming Ethereum merger. However, the launch will facilitate support for pre-validator leak accounting, a rise in slashing the severity, the light clients. Further, the upgrade will bear several numbers of services to the upcoming merger.
On the whole, the EIP-1559 upgrade on August 5th has boosted the price from $2,580 to $3,949. However, followed by the latest development, netizens are making insane predictions for Ethereum price. The star altcoin has the strong potential to reclaim the previous ATH of $4,366, successful accomplishment of the upgrade could uplift the price momentum beyond $5000 for short-term.