Ripple’s CTO hints Ripple-net services to expand on the Defi platform with other additional services like loans.
The increasing interest in Defi signifies the possible uptrend with Ethereum price.
Is Ripple trying to compete with Ethereum?
Ripple to Enter Defi Sector
David Schwartz, Chief Technical Officer of Ripple hinted at the possible move of the company to offer Defi services through Ripple-Net. In an interview, Schwartz said Ripple is still exploring the DeFi for the target audience.
Elaborating about the company’s plans in the next five years, Schwartz talked about the expansion of ripple-net services into the Defi sector. He said,
“We’re so looking into offering other services through RippleNet-things like loans, or Defi grows, offering Defi services to institutional partners.”
However, XRP, the native token of Ripple, is still stagnant. While the current market sentiments are viewed as ‘Altseason 2020’, XRP is walking on a bearish route. The token has declined in price whereas the other major Altcoins like Chainlink, Dogecoin, Cardano, etc have skyrocketed in their price in recent months.
Also know – Even Binance CEO is Bullish on Altseason 2020
ETH Price May Boom according to some reports
Defi primarily built on the Ethereum network has witnessed a massive growth in the recent past. Therefore the requirement for the ETH network also has risen prominently which, in turn, has led to a rise in transaction fees. Considering the current facts like market cap and volume, some analysts predict that the digital asset may be undervalued.
According to the data from Defi Pulse, the total USD locked within the Defi sector has hit an all-time high of $2.57 billion. The transactions on this platform are leading to a surge in the Ethereum transaction fees which are recording its highest ever level at present.
Some analysts predict that ETH is currently undervalued following the transaction fees. They might not be 100 percent correct but there is an increase in the demand for Defi platforms on the ETH network.
Will Ripple’s Defi plans impact Ethereum?
As mentioned above, Ripple has a hint on their plan to come up with Defi offering for the Ripple-net customers. Regardless of the fact that XRP has been outperformed by other altcoins, yet the developers of Ripple are thinking for a Defi service on the Ripple-net platform.
Interestingly, the investment arm of Ripple, Xpring in February 2020 announced its plan to interconnect with the XRP ledger to bridge the gap between the two digital assets. On the other hand, Bitcoin which does not provide any of these services will probably face serious competition from Ethereum.
Despite the FUD and speculations on the delay related to Ethereum 2.0’s and rumors of one of the co-founders disassociated with it, Ethereum is expected to plunge with the fact that ETH has become equally important to BTC in the Crypto Space.
On a final note, Ripple’s entry in the Defi sector might be good news for the digital asset which has not performed well compared to the other major altcoins in the ongoing Altcoin season 2020. On the other hand, Ethereum’s price is also expected to reach heights with an increase in the demand for Defi services.
With the projects lined up in the Defi sector, will Bitcoin face a major threat or will it be successful in maintaining the highest position in the crypto market.! Will ETH Price Boom? Let’s talk on Twitter