As we celebrate Ethereum’s 5 year anniversary today, we are even more excited about what’s to come with the rapid ascension of DeFi and the upcoming ETH 2.0 protocol upgrade.
In this inaugural monthly Ethereum report, we dive into what’s driving the growth of the DeFi ecosystem and discuss the road to ETH 2.0. We breakdown the latest sector trends in stablecoins, lending protocols, DEXs, and derivatives to go along with spotlights on notable DeFi projects. With high network utilization from increased ecosystem usage, a number of new Layer 2 scaling solutions are now also coming into the picture, hoping to offload some of the demand.
Regarding ETH 2.0, we take a special focus on the latest regarding Beacon Chain Phase 0, expected by Q4. With DeFi tokens in a bull run, the debate has shifted back to the degree to which ETH can capture value and we discuss the ramifications of 2.0 on the token economic design of ETH. Another area we explore is whether or not staking yields will be attractive enough to incentivize users to become validators to bootstrap the security of the network. With the rise of yield farming, there are now even more staking alternatives and competing sources for yield.
With DEX volumes hitting ATHs, the yield farming frenzy, and key catalysts such as ETH 2.0 and EIP 1559 on the horizon, there’s a lot to be excited about. As you can tell, there’s a lot to cover so we’ll let you dive right in!