Every week we provide insights into popular assets and hot topics in crypto, so you can easily learn more about the crypto market in bite-sized pieces.
In this Crypto in Focus we take a closer look at Ethereum.
Ethereum in the spotlight 🔦
Last week marked a milestone for Ethereum with its first ETFs trading in the US. Now, Wall Street needs a clear pitch for Ethereum. While Bitcoin is seen as digital gold, Ethereum’s value proposition is less clear. A popular pitch is to look at Ethereum as the blockchain app store.
Think of Ethereum as the infrastructure, like Apple’s iPhone and its operating system. Apple builds the phone and software, and developers create apps. Similarly, Ethereum provides the platform where developers build decentralized applications (dApps). These dApps cover finance, NFTs, stablecoins, and more.
As a crypto investor, you can directly invest in Ethereum (ETH) or in tokens from the many dApps built on Ethereum. Below are a few of the bigger dApps on Ethereum.
Aave (AAVE, available in the Change app)
Aave is an app where you can lend your money to earn interest, or borrow money if you need it, using your own assets as collateral. It works without a central authority, and everything is managed through automated processes on the blockchain. This makes it easier for people to access financial services directly from their digital wallets. Aave deposits currently exceed $13B.
Uniswap (UNI, available in the Change app)
Uniswap is a platform where you can trade directly with others using automated systems instead of traditional exchanges. Its key innovation is that anyone can create a market for a new token, enabling easy and permissionless trading. Unlike centralized exchanges that only support a limited number of tokens, Uniswap can support an infinite number of tokens, allowing for a broader and more diverse range of trading options. Over the past few months, Uniswap has generated over $50B of monthly trading volume.
Stablecoins (USDC, USDT, DAI, available in the Change app)
Stablecoins are digital versions of US dollars that make sending money fast, cheap, and easy, especially for international transfers. They give people worldwide access to USD and allow seamless global payments. Popular stablecoins like USDC and USDT also let you earn interest by depositing them into financial protocols, making them a convenient way to manage and grow your money. There are over $160B of USD stablecoins in circulation today.
As we celebrate the Ethereum ETF, it’s worth looking under the hood to explore the vast opportunities within the Ethereum ecosystem. For crypto investors, there’s a lot more to discover beyond the ETF itself.
Crypto as an asset class is known for its high risk. Exercise caution when considering investments, as they embody the “high risk, high reward” principle. 🏦🎰
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