Decentralized Finance

Elon Musk Shills DeFi, Will It Backfire the Crypto Market

Highlights

    Elon Musk once again showcased his support towards the DeFi space, yet no notable changes appear with the DeFi tokens

    Influencers often jump in action to uphold the sinking ship, yet the prime focus remains whether do they really think about the reasons for the dip!

Pump DeFi, Is This What Elon Musk is Saying?

Decentralized Finance or DeFi is this ambitious phenomenon that aspires to give the world access to global financial markets. Hence, in the year 2020, the DeFi space boomed like never before and gained mainstream adoption and trading.

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However, with the growing NFT’s and the traditional crypto space, the DeFi craze appears to have sidelined offlet. No worries, Elon Musk has jumped in action probably to uplift the sinking ship of DeFi.

As the DeFi space and the NFT space plunged heavily, there are still no signs of a healthy recovery yet. Moreover, a fresh crash has drained out the daily gains as well.  Almost the whole crypto space including the DeFi and NFT declined with a huge margin. 

So, query stocks with lightning speed, that whether the influencers do really worry about the main issue before expressing their support?

Also Read: A Gamer Suggests Elon Musk Consider BCH Over BTC for Tesla Cars!

High Gas Fees the Core Issue with DeFi?

Rising gas fees on popular Defi DApps could be one of the prominent reasons behind Defi’s lag in emerging markets. The gas fees on most of the popular protocols exceed $50, and some even exceed $1000. 

The data from the demographic website, says only citizens of 39 countries in the world, earn more than $33 a day, which means, one should spend earnings of one full day on just Defi transactions. Now, this sounds highly unaffordable, and maybe this is why emerging markets are falling a foot back.

And therefore, an influential personality with millions of followers, when mentions any asset in his tweet, people tend to follow him. Elon Musk did the same initially with Dogecoin, Bitcoin and now DeFi might be on his cards. 

But the question is whether Mr Musk does really consider high gas fees as a serious issue or no. Many believed ETH 2.0 would consider solving the issue, yet no major changes have surfaced the water. And hence traders may have looked upon different blockchains other the Ethereum in search of affordable transaction fees. 

Collectively, influencers, no doubt try to uplift the assets, like Elon Musk probably tried to do with the DeFi space, yet the issues need to be considered too. No doubt, DeFi is among the emerging markets of the crypto space, yet it also requires to be an affordable space too. 

Interesting Read: Big Breaking!!! Buy a Tesla Car With Bitcoin

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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