The crypto space's
decentralized finance niche has reached frenzied status within the
crypto industry, signaled by exuberant price highs and rampant
speculation.

"DeFi is the new overhyped concept in
Ethereum," MyEtherWallet, or MEW, CEO and founder Kosala Hemachandra
told Cointelegraph in an interview. "The noise is too much, so everyone
is just like running around trying to figure out what the next big thing
is and then putting a ton of money inside without doing enough
research," he said. 

Back in 2019, DeFi likely brought to mind
different concepts than what we see today. DeFi, at its core, existed
as a way for people to borrow, loan and store funds based on their
crypto holdings. Over the course of 2020, however, DeFi has ballooned,
spurring projects created out of nowhere, gaining significant attention
while speculators move their funds around in search of the best profit
on coin price speculation and interest-bearing vehicles. Hemachandra's
comments refer to this newer hype movement. 

The MEW founder
explained that DeFi boasts losers and winners, with the winners adding
further hype to the movement. As a byproduct of the hype, Ethereum
network transaction fees have skyrocketed in recent weeks, at times costing users between $40 and $80 per transaction. 

"That's
the main cause of the Ethereum gas price issue, as of right now," said
Hemachandra. He noted, however, that the present situation is an
opportunity for the industry to scale up to the challenge and improve
solutions around Ethereum, explaining that tension can spur growth. 

Others have noted that another potential problem with DeFi stems from Ethereum's low transaction-per-second numbers.  

source link: https://cointelegraph.com/news/defi-is-too-noisy-myetherwallet-ceo-says