Researchers have identified a threat to Ethereum 2.0
The meteoric rise in popularity of the decentralized financial sector DeFi threatens demand for Ethereum after the upgrade to the second version of the network. This assumption was made by analysts at Consensys, a blockchain software development company.
In the second version of Ethereum, there will be a staking option, Consensys experts explained in the latest report. This feature provides an opportunity to passively increase the number of coins – for this you must temporarily block 32 ETH in a smart contract. But the potential profitability is less than a similar alternative in the DeFi sector.
In DeFi, users can provide liquidity to services and open deposits in cryptocurrency and receive a high percentage of the deposit as a reward. In this regard, DeFi platforms can create significant competition for altcoin.
Consensys added that the launch of the zero step in Ethereum 2.0 will most likely take place before the end of 2020. But the upgrade is unlikely to improve the scalability of the altcoin network.
The interest rate on deposits in the DeFi sector is 5-10% depending on the platform and cryptocurrency. During the first days of operation, some services allow you to open a deposit with a very high return. For example, the Spaghetti Money service, launched in August, offered an interest rate of 35,000% per annum for a bitcoin deposit.
– Investments in cryptocurrencies with a return of 1000% and higher. How it works
– Trader lost $ 140,000 in cryptocurrency after connecting to the DeFi service
– Binance Exchange offers 1200% return on Cryptocurrency Investment
You can find more news about cryptocurrencies in our telegram channel GFN-Crypto.