Currently, Ethereum is likely to be attractive to new investorsentering the digital asset market. The price of Ethereum has surged to the upside by 106.44% this year, outperforming crypto assets such as Bitcoin.

Despite the somewhat declining price action of Ethereum within the previous two weeks, the general sentiment is stillpositive.

Bullish speculations accompany bullish trends. In recent times,EthereumPrice.org founder, Nick Cannon, talked about how Ethereum moved from a billion-dollar market industry to $1 trillion.

Cannon highlighted Ethereum’s ability to accommodate DeFiapplications. While he was talking about the long-term successof DeFi, he said Ethereum’s lending process at the moment needs 150% collateralization ratio; that is, considering Ethereum’s present market capitalization of about $30 billion, the network is going to permit a maximum loan of $20 billion USD for the utilization of each ETH unit.

Nevertheless, as of the time of writing, the amount of ETH utilized in collateralized loans as well as other financial applications was about $2.8 million, somewhat below 2% of the aggregated 109 million ETH in circulation.

According to Cannon, if the aggregated number of ETH is not to go beyond 120 million based on Ethereum’s anticipated supply inflation rate, almost 10% of the aggregated ETH supply is going to offer support for the $1 trillion derivatives market.

He acknowledged the need for many things to take place for the growth of Ethereum finance from $1 billion to $1 trillion. A noteworthy point of consideration is that DeFi is still yet to become a guaranteed-shot lending protocol.

Regarding the recent bZx attacks Cannon thinks such will continue to some extent but it needs attention prior to holding all hopes on Ethereum’s DeFi protocol.

Cannon is hopeful about ETH crossing $5k by the end of this year but he thinks a lot of things are necessary for Ethereum to make it happen. Nonetheless, some investors are really looking forward to a rise.

At the moment, 400 ETH options contracts are placed saying the price will be above $800 by the end of September, prior to expiry.