This content adapted from Two Prime Digital Assets’ April 27, 2021 report, “The Rise of Institutional Ethereum Investors,” available for free download.
Ethereum’s developer network dwarfs Bitcoins. This is laying the groundwork for the new wave of digital investment tools that are attracting traditional institutional investors who wouldn’t have given digital assets a second thought even 18 months ago.
The size and skill of the Ethereum developer network are creating new protocols that bridge the gap between traditional finance and Decentralized Finance (Defi).
Pioneers made the leap and proved the technology. The first few big players assessed the waters and came in. Now the technology and burgeoning talent enable risk-management strategies that make sense in the vocabulary of corporate treasuries and others.
6X the Development Power Creates Limitless Upside
Ethereum is, by far, the most widely used development platform for blockchain technology, with over 90% market share in application development and transaction volume1.
According to Electric Capital, in the 3Q20 Ethereum had 2,325 active monthly developers while Bitcoin had just 3612.
With a robust underlying blockchain and smart contracts platform, Ethereum has become the de facto layer 1 blockchain for DeFi applications.
There is currently $84.72 Billion in USD locked in DeFi protocols, growing at a rate of nearly 40% per month3. The Ethereum ecosystem will continue to benefit from the rapid growth and adoption of DeFi solutions in the market. As they grow, so does the value of ETH (as described in the Fat Protocol Thesis) and its legitimacy in the eyes of people whose strategy is protecting wealth, not risking it.
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- https://medium.com/electric-capital/electric-capital-developer-report-2020-9417165c6444 4. https://defipulse.com/
- 4. https://defipulse.com/