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"Investors Are Bullish On Ethereum As DeFi Sector Increases"

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According eToro, a popular multi-asset trading platform, investors are very optimistic about Ethereum due to DeFi.

The company released a report on global investment made in the platform in August, revealing that investors returned to trading market-capitalized altcoins such as Ethereum, but also Ripple and Tezos, which saw a trade surge last month.

All the most famous altcoins were up in August except for Cardano's ADA, always according to data from eToro. Investors also flocked to EOS and TRON to capture a late rally of altcoins.

EOS saw a 640% increase in monthly trading on eToro, jumping from the 15th most traded cryptocurrency in July to August 7.

Justin Sun's TRON made similar moves from 12 to 8 with a 390% increase in monthly trading activity. Investors took advantage of the price increases of both currencies, with EOS up 28% so far this year and TRON up an impressive 126%.

Cardano's ADA, which was the third most traded cryptocurrency in July, fell to the fifth with a 21% decrease in investing activity on eToro compared to the previous month. Cardano successfully implemented its Shelley updates by moving to a decentralized network. Despite this, the coin fell from $ 0.139 on August 1 to $ 0.117 on August 31.

Tezos, one of the first blockchains to use a proof-of-stake mechanism, moved up one position to fourth as investors took advantage of the coin's upward price trajectory. Tezos has been one of the most popular assets in the last 12 months, with business activity in August 2020 increasing a staggering 1365% compared to August last year.

Simon Peters, market analyst and cryptocurrency expert at eToro, explained:

“Tezos saw a significant increase in trading on eToro, with crypto assets trading lower against bitcoin in early August, which may have encouraged some entries into the token. Having already announced a partnership with China's Blockchain Services Network, Tezos recently announced the integration of Harbinger's pricing oracles. This allows the Tezos network to use real world pricing data for DeFi applications, which I consider very positive for the long-term success of the network. The question now is, will altcoins hold the interest of retail investors or will rising bitcoin prices usurp its popularity? "

Ethereum on the rise due to DeFi

Ethereum saw a particularly strong surge in popularity, constituting a 123% increase in trading compared to July. The Ethereum platform has been one of the main beneficiaries of the exceptional rise in decentralized finance (DeFi), a theme that has been around since 2017 but exploded over the last month.

Furthermore, Ethereum also launched its Medalla testnet in early August, when it begins its transition to a proof-of-stake mechanism, which many users are very excited about.

Simon Peters commented:

“August saw massive increases for major altcoins, particularly EOS and TRON, as investors looked to take advantage of their excellent price performance. Investors flocked to Ethereum in August as well, as co-founder Vitalik Buterin and the team continue to roll out their long-awaited 2.0 update. The launch of the Medalla testnet in August, a major breakthrough on the road to ETH 2.0, faced some initial issues, but was clearly a step in the right direction. With Ethereum now at $ 462, the price increase is clearly a statement of intent from the DeFi community. The increase in activity around Ethereum shows that investors recognize the potential that exists in the DeFi space. "



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