Price Preview: August 31 – September 6
ETH leveraged in DeFi accurately predicts the recent growth in ETH's price as demand continues to mount.
Hello Ethereans!
After a short-lived fall below $400 last week, ETH is now back to 2 year highs and is looking unstoppable.
SushiSwap, a community-governed fork of Uniswap, has played a large role in the price action. The decentralized exchange (DEX), which isn’t yet live, is currently providing Uniswap liquidity providers with the SUSHI governance token for a dozen ETH-paired pools. SUSHI will provide holders with future cash flows as well as a vote on the direction of the platform and has so far attracted $800 million in total value locked.
SushiSwap faces some challenges, however, as the VC-backed and highly talented Uniswap team (from which its code derives) are likely to announce plans for their innovative version 3 at some point soon.
This hasn’t stopped SUSHI token holders from quickly voting in favor of decisions to help bolster demand for the SUSHI token. As I wrote last week, this pattern is something to expect from all governance tokens as holders pass proposals that alter the token’s economics in a self-serving way.
SushiSwap isn’t the only application that’s moving markets. Yearn.finance, whose token (YFI) has grown from zero to now $35,000 in a matter of weeks, is expected to launch an ETH vault very shortly. The vault is likely to allow depositors to earn double digit returns and may see a further surge in demand for ETH.
In this preview we look at:
ETH price set for a possible breakthrough beyond $500.
DeFi behemoth, Aave, is granted a license by the UK’s FCA.
ETH leveraged in DeFi crosses 5 million, demonstrating - again - its value as a leading indicator for the price of ETH.
Media roundup for the week ahead.
We’ve launched our Discord server. Come and join the conversation!