It is possible for the cryptocurrency markets to be bruised at the end of 2019 as they have declined by 50 percent from their highs this year. However, when it comes to decentralized finance (DeFi), the growth has been progressive such that it has reached another highest level this week. Likewise, the contributions of Ethereum to the DeFi domain have increased.

DeFi works by locking ETH into smart contracts towards the earning of interest in decentralized lending markets. It is also volatile but incomparable with that of direct asset trading and is a fit for people with a preference for lower-risk as regards their digital investments.

Defipulse.com reported that the sum locked into decentralized finance has become $685 million and is now the highest of all time. Despite the rise and fall in the cryptocurrency markets this year, even as there was a decline in the aggregated market cap to below $200 billion in the week, the growth of DeFi has reached 150 percent this year and may continue growing by mid-2020.

Ethereum contributes the most to DeFi. A new height was attained yesterday as the amount of ETH in DeFi turned 2.7 million and it represents 2.5 percent of the total supply. Right now, the prices of ETH remain dull just over $150 and ETH is moving in line with the performance of Bitcoin.

Market participants are hoping that ETH would become a standalone asset in digital finance as the growth of DeFi continues and serenity is close.

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