Now Is the Time to Build Beyond DeFi on Ethereum: Vitalik Buterin

Ethereum has come a long way since it launched in 2015. The network has been behind some of the biggest crazes in the cryptocurrency industry, from ICOs to CryptoKitties to non-fungible tokens (NFTs) and decentralized finance (DeFi).

While ICOs in their original form have fallen by the wayside, the DeFi segment, in particular, has taken the financial industry by storm. DeFi gives users a way to generate passive income through activities such as lending and staking and bolster their returns.

The total value locked (TVL) in DeFi currently hovers at USD 99 billion, according to DeFi Llama. The Ether price has benefited from the rise of DeFi, with the price soaring 657% over the past 12-month period.

DeFi and Beyond

Vitalik Buterin, the co-founder of Ethereum, believes that Ethereum’s use cases could go far beyond financial applications, according to his recent keynote speech at the Ethereum Community Conference 4 (EthCC) event in Paris. He pointed to DeFi protocols such as Compound, Aave and Uniswap, for example, that have all experienced great success. Vitalik is a fan of DeFi, though he is quick to point out:

‘But this isn’t all that Ethereum was trying to do.”

Source: YouTube/Grand Amphi Theatre

Vitalik admits that “price is nice,” but he is quick to add that it should “only ever come as a consequence of utility.” He wants the common denominator among Ethereum users to be utility, not just price.

The reasons why financial applications have thrived on Ethereum are two-pronged, according to Vitalik. First, centralized technology in finance is abysmal. And secondly, fees are so high, a problem that is being solved.

Considering that Ethereum is addressing fees and scalability with the emergence of sharding and Eth 2.0, he says that now’s the time to start building and go beyond financial applications.

NFTs R’ Us

NFTs, which are digital assets containing a component such as art, music, video, etc., are helping Vitalik’s cause by expanding Ethereum’s use cases beyond finance. These digital tokens have caught on like wildfire and have helped to attract outsiders to the cryptocurrency and blockchain space. Vitalik said,

“NFTs are interesting, they’re this interesting cultural phenomenon. And they really have attracted a different kind of people to the Ethereum space that are interested more in the art side than in the finance side.”

Vitalik wants to bring Ethereum further beyond DeFi. He defines the near-term goals as something that drums up enough support in the Ethereum community and “something that is useful for people to do.”

EtherLite Sees Launch of New DEX as Ecosystem Grows

Now that EtherLite has introduced its blockchain platform, the project’s ecosystem is beginning to take shape. EtherLite is a hard fork of the Ethereum network, and as such seeks to tackle some of the issues its much larger peer has faced surrounding scalability and speed, for instance.

Not surprisingly, there are some parallels between Ethereum and newcomer EthereumLite. For example, Ethereum has a foundation that supports the project as well as “related technologies.” EtherLite similarly has a foundation that is there to support projects that want to build on the EtherLite blockchain.

Most recently, a decentralized exchange (DEX) and automated market maker called Etherlite Exchange has launched on the EtherLite network. The DEX is one of the projects being supported by the EtherLite Foundation through a recently introduced SmartGrant investment fund, according to the EtherLite website. Other projects being supported by the foundation include Noften, which appears to be dedicated to non-fungible tokens (NFTs), and Battleship, a blockchain-fueled lottery system.

Etherlite DEX

The Etherlite DEX is already live, where users can trade ETL, the native cryptocurrency of the EtherLite network. The DEX team also has several additions in the works, including the following:

  • Rewards system featuring the DEX’s goverance token, ELX
  • “Alpha-hunting tools” such as charts and market data
  • Yield generation
  • Analytics

While the EtherLite ecosystem is shaping up to resemble that of Ethereum in some ways and is even compatible with the Ethereum Virtual Machine, it has some catching up to do. Ethereum is the leading platform in the decentralized finance (DeFi) space, where the total value locked (TVL) currently exceeds USD 107 billion, according to Defi Llama.

Other DEXs such as PancakeSwap and Uniswap boast USD 3.76 billion and USD 3.69 billion in TVL, respectively.

Price Point

The bitcoin market downturn has taken altcoins along for the ride, and Ethereum has not gone unscathed. The second-biggest cryptocurrency has shaved 10% off its value in the month of July so far.

The EtherLite price had a rocky weekend and is down roughly 25% in the last 24-hour period alone. Investors who are focused on the building out of the EtherLite ecosystem do not appear fazed, based on social media comments. Others are finding the latest declines tough to ignore, and are looking to the EtherLite team for answers.

 

EtherLite Finds Its Sea Legs as Team Outlines Ambitious Targets

Its’ been about a week since EtherLite started trading on crypto exchanges, but apparently, there is much more ahead for this burgeoning project. EtherLite, which was created from a hard fork of the larger Ethereum network, has already started trading on several exchanges, including HitBTC, but an eager community is clamoring for more.

Fortunately for them, the project is quick to engage with users on social media, including their Telegram channel, where the team has revealed some details. And while the ETL market is active, investors are waiting for the next big thing involving decentralized exchanges (DEXs) and decentralized applications (Dapps) in hopes of driving up the price further.

The EtherLite price is volatile, as is the case with many cryptocurrencies, especially newer ones. But ETL has managed to surpass its pre-ICO price.

DEX and Dapps

One thing investors want to know is when they will be able to trade on DEX Uniswap and stake their ETL tokens. Along these lines, they have their sights set on swapping tokens to wrapped ETL (WETL), which is needed in order to trade on the DEX.

EtherLite has yet to tip its hand as to the steps that will be involved in the process, nor has it sent the contract to wrapped ETL. While ETL is live on Uniswap, investors can’t trade it until liquidity is added. They are preparing for users to both “hold and stake EtherLite” in the hopes of reaching wide-scale adoption.

The EtherLite team is currently in negotiations to list ETL on “major to exchanges,” according to the community leader on Telegram. They are also looking to raise EtherLite’s profile for Dapps, a use case for which Ethereum is currently out front. EtherLite is targeting more than 100 Dapps on its platform including at least “three large scale” ones. The community lead hinted that Dapps will be revealed in the next few weeks.

EtherLite Blockchain

While it was born from Ethereum, EtherLite has set out to solve all of the larger network’s issues surrounding scalability and fees, to name a couple. The project has captured the attention of South African cricketer David Miller, who recently tweeted that the EtherLite blockchain “looks interesting.”

The EtherLite Foundation is behind the EtherLite blockchain, and they are looking to make it fully decentralized in the next couple of years.

Uniswap Shines on Top-10 Crypto Leaderboard With Double-Digit Gains

Uniswap, whose logo is a unicorn, is a decentralized trading protocol built on the Ethereum blockchain. Another way to look at it is as a decentralized exchange or DEX, which are growing in popularity in the cryptocurrency space. For its part, Uniswap boasts the highest trading volume of any DEX. Ryan Watkins, who is in research at Messari, tweeted in recent days about how Uniswap’s V3, the latest version of the protocol, is seeing a volume of USD 6.5 billion and is inching closer to Uniswap V2.

Source: Twitter

Uniswap’s native token, (UNI), is up by a double-digit percentage today, gaining 12% at last check and outperforming all of the top-10 cryptocurrencies. Twitter account Crypto Dream, which provides technical analysis on bitcoin and altcoins, published a chart on UNI, saying that while it scares some, the “chart is bullish.” Indeed, there are a couple of reasons to be excited about Uniswap. It is important to note, however, that cryptocurrencies remain a nascent asset class and can be more volatile (and riskier) than most other investments.

Source: Tradingview

Mainstream Bump

Uniswap received a bump after mainstream financial publication The Wall Street Journal on May 24 featured the DEX in an article about crypto exchanges that compete with Coinbase (Nasdaq: COIN). Uniswap has been gobbling up market share at its centralized peer Coinbase’s expense.

The Journal cites Messari data that shows Uniswap’s trading volume last month surpassed USD 36 billion vs. Coinbase’s USD 110 billion. The appeal of DEXs like Uniswap to crypto traders is that they get to maintain control of their coins rather than leave them on the trading platform, which is the model of centralized exchanges like Coinbase. Uniswap’s decentralized nature removes the risk of the protocol being shut down by any entity.

DeFi Depot

DeFi has emerged as one of the hottest trends in the cryptocurrency and blockchain space, and Uniswap is at the center of it. Uniswap is where thousands of DeFi tokens are traded. Uniswap’s popularity seems to grow commensurate with the rise of the DeFi market.

With more than USD 55 billion in total value locked in the DeFi market, representing the value of assets that are locked in a DeFi protocol, Uniswap has the wind at its back for the foreseeable future. One thing to keep in mind is that the swift rise of the DeFi market has also placed a target on this segment’s back by the regulators.