The Creator of the MyEtherWallet Wallet, Kosala Hemachandra, believes that the cryptocurrency community is overestimating the capabilities of the decentralized Finance industry (DeFi).
According to Hemachandra, this industry has “made a lot of noise out of nothing” – investors are ready to invest significant capital in DeFi projects without even analyzing their disadvantages and advantages. In 2019, investors viewed decentralized Finance as a tool through which they could obtain loans secured by digital assets without the involvement of intermediaries.
However, in 2020, the DeFi industry began to grow like a soap bubble, and there were a myriad of projects focused not on the implementation of the original mission of DeFi, but on making a quick profit. The price of tokens for such projects is artificially inflated by exchange speculation.
“DeFi has both winners and losers. It is the winners who “add fuel to the fire”, further drawing attention to decentralized Finance. The high cost of gas in the Ethereum network is a side effect of the excessive hype around DeFi,” said Hemachandra.
So, on September 17, Ethereum miners managed to earn 42,763 ETH on commissions, which is explained by the increase in the number of transactions due to the growing popularity of DeFi applications and the increase in trading volumes on decentralized exchanges. However, a few days ago, the average transaction fee on the Ethereum network fell to a 49-day low of $2.34.
To date, the launch of Ethereum 2.0 is also actively discussed. earlier, Hemachandra suggested that the full deployment of the update will not occur until 2022. The Creator of MyEtherWallet believes that developers should not rush to launch, since we are talking about an immutable blockchain that can compete with centralized solutions.