This year would go down in history as one of the years in which crypto activities made massive headlines across the globe. Ranging from the drop in digital assets price to the volatility that encompassed the crypto sector. Another major breaking move was the market capitalization of the DeFi sector which made a record-breaking move to top at around $9 billion before witnessing a rather slow paved movement.

In the digital asset sector, things always have a way of undergoing rapid changes because major activities from high-value clients and investors affect the performance of the assets. A typical example is the flocking of investors towards the seemingly booming DeFi sector which has seen the projects in the sector gather massive momentum to stay in the news.

This article seeks to discuss the crucial crypto trends which have shaped the sector since the beginning of the year, they are:

ETH Gas Fees

Last month was one of the busiest months of Ethereum after it witnessed the emergence of DeFi projects in drives. As a result of the emergence of the DeFi projects, investors were trying to avoid the fear of missing out hence the need to get their transactions approved on time. This led to the continual surge of the Gas fees on the blockchain. A record from Uniswap showed that the average transaction fees on Ethereum had reached around $15 by September 1.

Even though Ethereum miners are the biggest winners in this situation, not much can be said for investors who would be frozen out because of the high rate of gas fees needed to carry out transactions on the blockchain. It should be noted that the Ethereum gas fee is the unit of measurement of the total amount of power needed to confirm transactions on the blockchain.

DeFi Hype  

DeFi has emerged as one of the critical trends in crypto since late last year. Over the past 6 months, this sector has been experiencing rapid growth, with a new milestone set recently as the net value locked in DeFi attained an incredible new height of $4 billion. A lot of companies operating in the blockchain field have already launched their DeFi products. 

Further, popular protocols like Compound, Balancer, Curve, etc. have introduced a new wave of crypto opportunities for investors that seek varying risk-reward ratios, deep liquidity, and fascinating, inexpensive modern financial instruments. Also, there’ll soon be further adoption of DeFi, in addition to user-base growth as institutional capital makes its way into the digital asset field. 

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Economic Crisis and Crypto Adoption  

The coronavirus pandemic has led to the huge disruption and folding up of many companies and made people have a rethink about their attitude toward a lot of things in life. Consequently, such previously questionable activities like crypto payments or remote jobs have become significantly crucial, and they seem like they’ll stay that way, even after COVID-19 comes to an end. 

Besides, the time is ripe to get rid of cash and move closer toward realizing a new quality of life. Fortunately, the blockchain sector has blossomed, as a new era demands more experts specializing in the field of distributed ledger technology. In our modern world, apps for interaction with the crypto world have witnessed massive improvements and become easier to use, enabling you to buy digital assets with only your credit card.

Ethereum 2.0 launch

Once again, 2020 brought yet another headline-making achievement as Ethereum announced that they were making plans to launch a new Ethereum 2.0. Ethereum 2.0 is known as the second iteration to the previous blockchain used by Ethereum which will see the new blockchain provide users with a proof of stake consensus instead of the usual proof of work. 

The new Ethereum 2.0 would be able to handle a higher computing power as it would be able to confirm more transactions in seconds than the previous blockchain. Presently, the phases of the launch are being rolled out in phases but a full launch is not expected anytime soon with the firm hinting at a launch date in the early parts of 2020.

YFI tokens hype

While the crypto community were hoping for a strong upward surge in centralised currencies, Etherueum based DeFi project YFI was the one that came along to steal the show. When the token was launched on July 18, it sold at a small price of $32 but has now gone on to move past the $11,000 mark in just one month. 

As a result of the move in price, investors were flocking around the project which automatically saw its market cap contribute around $600 million to the DeFi sector's total market cap. A key reason for the rapid increase in the price of the coin as stated by experts is the fact that it was scarce and the holders were making use of it in other platforms. Presently, the majority of the big game players are holding on to the token to stake with it.

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In conclusion, even though the coronavirus pandemic has disrupted the activities of the whole world especially the financial sector, the cryptocurrency sector has yet again shown that it will surmount any hurdle that blocks its path. Presently, we are looking out for future events that would take over the entire media, and who knows, it might be Bitcoin at $100,000.

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