Potential Ethereum Killer Rises 20% After FTX DeFi Project Announcement

Ethereum ETH China
Image courtesy of Reuters//Thomas White/Illustration/

Potential Ethereum Killer Rises 20% After FTX DeFi Project Announcement

The recent crypto bull market can be partly attributed to the huge uptrend in DeFi tokens, following a bull run in Ethereum. Due to the widespread distribution of Ethereum and years on codes on solidity, there is the leading or the only platform for issuing these Dapps. This begs a question though.

On raised by Meltem Demirors, the CSO of Coinshare and probably echoing with many altcoin investors.

why doesn’t someone just build DeFi on a different base layer

There are few motivations for this as well due to rising GAS fees; the root of the problem with restricted the bull run of 2017, scalability and high fees.

FTX DEX on Solana

Comes, FTX DEX (Decentralization Exchange) is a decentralized version of the FTX centralized exchanges. The daily gain on SOL tokens is currently at 21%. Moreover, the compiled three-day rise in the token from 0.99 is over 100% with the high at $2.06.

SOL/USD 1-Day Chart on Binance (TradingView)

Moreover, the rise in the tokens price above $1.5 is attributed to the addition of $SOL tokens across FTX exchange itself. The announcement included a Tesla Truck Giveaway program along with 10,000 SOL tokens. The subsequent rise this morning was extended by the announcement of project serum.

However, the supply of Solana might be a concern for long-term hodlers because of the supply schedule by the end of the year.

https://twitter.com/loomdart/status/1287757755382665216/photo/1

Moreover, there are other competitors to Solana as well like Tezos, Tron, Cardano, Ethereum Classic and so many others with faster transaction capabilities.

Why an Ethereum Killer?

Ethereum processes 7 transactions per second, and Serum will be leveraging a tremendously faster platform in the form of Solana. According to SBF Alameda, the founder of FTX exchange it is considerably decentralized as well. He tweeted,

Last but not the least, in a crypto bull market, hefty gains on positive catalysts are not uncommon. This is also reminiscent of the Coinbase effect where addition on the exchange causes a rise in tokens’ price. Currently, FTX is one of the leading derivatives market, and also a platform for a large number of secondary derivates based on volatility and other factors.

Do you think the expansion of DeFi to other platforms will be bullish for the markets in general? Please share your views with us. 

Summary
Potential Ethereum Killer Rise 20% After FTX DeFi Project Announcement
Article Name
Potential Ethereum Killer Rise 20% After FTX DeFi Project Announcement
Description
The recent crypto bull market can be partly attributed to the huge uptrend in DeFi tokens, following a bull run in Ethereum. Due to the widespread distribution of Ethereum and years on codes on solidity, there is the leading or the only platform for issuing these Dapps. This begs a question though.
Author
Publisher Name
CoinGape
Publisher Logo
Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Author: Nivesh Rustgi
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
Post your comment...
Nivesh Rustgi 1143 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
Follow Nivesh @