Ethereum “Anti-Network Effect” Shows “DeFi Has Outgrown” The Altcoin

Ethereum broke out over the weekend and looks primed to follow in Bitcoin’s footsteps by shattering its former all-time high and soaring far higher. But while Bitcoin prices climb, there has been minimal impact on the underlying network, nor has there been a sizable increase in fees that characterized the 2017 peak.
Meanwhile, ETH gas fees are spiking again as interest turns from Bitcoin to DeFi, and one analyst says that it has, unfortunately, put a spotlight on Ethereum’s “anti-network effect” and how much decentralized finance has outgrown the smart contract focused network.
Investment Firm Managing Partner: DeFi Has Outgrown Ethereum
Ethereum was the first crypto asset to explode in 2020, resulting in the first major really to start the year. The top of that run was in when pandemic-related lockdowns first began, causing widespread panic and the Black Thursday selloff.
After a few months of stagnancy due to leftover fright, a sudden boom driven by decentralized finance revived not only Ethereum, but it helped to turn sentiment bullish enough for Bitcoin to break out as well.
Related Reading | Ethereum Transaction Fees Rising Hints At DeFi Season Round Two
The summer of DeFi only came to an end when ETH gas fees reached prices so high, it made it so using the tech didn’t make much sense financially.
But …