Ethereum 2.0 (ETH), any DeFi survivor?

Ethereum 2.0 (ETH), any DeFi survivor?

After the collapse of Celsius and 3AC, Ethereum and the crypto market fear of repeated bankruptcy. However, investors are still cautious about the evolution of the Ethereum (ETH) network and continue to position themselves on the stacking of Ethereum 2.0.

Celsius victim of ether (ETH) and Synthetic Ether (sETH) fall

How can Ethereum still keep up? Since the Luna crash in the spring, the bad news has been growing in the crypto market. Celsius was the first major company to fail due to poor asset management. Several times suggested by regulators for the lack of transparency regarding the use of deposited funds, Celsius is too promising for Ethereum 2.0. Unfortunately for her, this loan gradually turned into default. This is because Celsius is almost out of liquid ether (ETH) which would allow it to repay weekly interest. Meanwhile, sETH, the token cache on Ethereum lost its peig compared to ether. If Celsius sells his sETH, he will lose even more money and later participate in the collapse of SETH.

The repeated bankruptcies of investment funds i cryptocurrencies

Ethereum is keeping up, but the others are toasting. 3 Arrows Capital (3AC) is one of the oldest hedge funds invested in cryptocurrencies. It therefore has a huge weight in this market. However, the market crash got the better of its financial stability. 3AC lost $ 200 million a few months ago due to its location on the Luna. It is now on its investment in sETH to weaken this crypto giant. 3AC no longer appears to have collateral for its loans and therefore may also be in default. Justice then liquidated 3 Capital Arrows.

Ethereum, ether, ETH
ZAC Su, the founder of 3AC, still had faith in Ethereum, even at the end.

After buying Celsius, the FTX exchange came to the rescue of a bankrupt third company, BlockFi, by granting him a loan with an option to buy. The pity of some is also the happiness of others in this turbulent period.

Unshaken confidence in the arrival of Ethereum 2.0

Not all of its cascading liquidations, despite being partly due to sETH, have damaged investor confidence. In fact, deposits on Ethereum 2.0 hit an all-time high on June 30th. The volume of deposits now reaches 12,976,933 ether (ETH). As we approach The Merge, more and more investors are looking to join the merger stacking of the DeFi flagship network.

After eliminating about $ 1,000, Ether has gained less worrying momentum since yesterday. Even if many companies remain weak, the Ethereum network is still considered by investors as a safe bet that needs to be closely monitored.

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