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Ethereum 2.0 To Boost DeFi Further

Image source: Prysmatic Labs

The crypto world has seen trend changing over the years. The crypto trend is never stagnant and it keeps on changing every now and then keeping the investors on their toes to track it.

It is said that the Ethereum 2.0 could boost DeFi on a further rate. Also known as decentralized finance, DeFi is the industry of building decentralized applications for financial services.

Some in the DeFi space have postulated that the upgrade will decimate DeFi.

Marc Zeller, CEO of a top DeFi protocol Aave, said that if anything, ETH2 phase 0 will multiply the supply rate of ETH. He also added that many will be hesitant to deposit their money into Ethereum 2.0 staking.

But he is also optimistic that there will be some ready to stake their cryptocurrency.

“Markets love equilibrium so you will end up with a small discount between ETH supply rate on Aave and the staking yield on ETH2. So my take is that ETH2 will grow DeFi instead of being a threat.”

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