While the explosion of projects in Defi has caused growing pains for Ethereum, layering solutions are in the works that are helping the network to scale. The launch of Tether tokens (USDt) on such solutions, as a valuable and trusted source of liquidity, will help power Ethereum towards its full potential.”
Kadan Stadelmann, CTO of blockchain solutions provider Komodo, said: “Ethereum has continued to show a lot of positive momentum, especially over the past week or so as DeFi [decentralised finance]-focused projects have rallied.
For ethereum, Eth2 [next generation of ethereum] is a major upgrade for the network which promises to bring scalability.
“Although ethereum is currently experiencing high gas fees, Eth2 and the move to proof of stake will create a more scalable infrastructure for DeFi applications.
“At the end of last year, it was announced that 100,000 ETH was already locked in the Ethereum 2.0 Deposit Contract.
“This large amount of locked funds, plus increased demand from major financial institutions looking to get into blockchain, has created increased demand on a macro level.”