Ether Dominance At HIghest Point So Far in 2020 Thanks to DeFi
The dominance of ether in the cryptocurrency market crossed 12% Monday, its highest point in 2020 according to data calculated by real-time charting firm TradingView. Dominance, or the market cap as a percentage of the entire cryptosphere, is a measure traders use to quickly get a sense of a cryptocurrency’s importance relative to the broader digital currency market. Although ether’s dominance has dipped below 12% Tuesday, it’s still higher than it has been all year; the last time ether hit 12% dominance was back in May 2019.
“DeFi users can access that market using stablecoins. But clearly the main core asset fueling the DeFi run is still ether, hence its recent dominance,” said Jean-Marc Bonnefous, managing partner for Tellurian Capital, which has been investing in crypto projects since 2014.“The recent development and ramping up of new and better DeFi applications such as Compound, Aave and Balancer is clearly generating more traction for Ethereum,” he added.
“DeFi users can access that market using stablecoins. But clearly the main core asset fueling the DeFi run is still ether, hence its recent dominance,” said Jean-Marc Bonnefous, managing partner for Tellurian Capital, which has been investing in crypto projects since 2014.“The recent development and ramping up of new and better DeFi applications such as Compound, Aave and Balancer is clearly generating more traction for Ethereum,” he added.
