While Ether (ETH) is starting to recover from it’s most recent downturn, we have yet to see the once-dominant cryptocurrency recover to its 2018 levels. However, much like the ICO bubble that propelled ETH’s price to record highs years ago, the new industry of Decentralized Finance (DeFi) could have the same effects.
With its widespread use of smart contracts, this could be the new foundation for ETH’s recovery and an ideal time to take an ETH loan.
Source: @antonpagi via Twitter
Many Decentralized Finance models are built on top of the Ethereum protocol, meaning this may be a significant factor supporting the recovery and long term growth of ETH. The reason behind this is due to smart contracts. DeFi uses smart contracts on a decentralized blockchain network to engage financial services like ethereum lending that were previously only available with traditional third party banks and service providers.
Smart contracts remove the midde man and let crypto users carry out finacial services. According to some analysts, Defi is growing significantly over the last three months. This parabolic growth shows the increased usage of decentralized applications (DApps) on the Ethereum protocol that increases the usage of ETH.
Given the recent downturn in the cryptocurrency market, it’s unlikely that ETH will make a dramatic short term recovery. In that case, an ETH loan on YouHodler can help one hedge their ETH. ETH-backed loans give users funds to invest in more stable assets during bear markets or give them buying power for cryptocurrency when it’s “on-sale”.
Either way, all signs point to a long term recovery of Ethereum with a stronger foundation backed by the increasing uses of smart contracts, DApps and Ether.
At the time of writing this article, ETH’s price is on the rise. Yet, there is still plenty of time to benefit from its long term growth. YouHodler has a wealth of features to help HODLers and traders capitalize on this:
Traditional ETH Lending: For HODLers who want a quick ETH loan to access new fiat funds (USD, EUR).
Turbocharge ETH Loan:. On a more complex scale, one can Turbocharge their ETH up to x10 with YouHodler’s Turbo Loans feature. The automatic process takes the funds from the first loan to buy more crypto to use as collateral for the next loan in the chain. Repeat this process 3 - 10 times.
Margin trading tools: For the advanced crypto traders out there, YouHodler’s Margin Trading Suite has a variety of helpful tools to help automatically manage ETH loans for maximum efficiency.
CLICK HERE to get an ETH loan today and prepare for its recovery.