Bitcoin Hash Rate Continues to Rise, But DeFi is Under Threat: Report

The crypto industry is always in a state of motion. With the industry continually evolving, it can be difficult to keep up with the changing landscape. According to a recent report, Bitcoin hash rate continues to rise while DeFi is under threat.

Bitcoin Hash Rate Surges Onwards

Bitcoin’s hash rate has been on the up and up since the start of the year. This uptick has been caused by new hardware in the mining industry, allowing miners to extract more cryptocurrency from their rigs faster than ever before. This has allowed miners to reap the rewards of their investment in hardware much sooner than before.

These new pieces of hardware are also responsible for the increase in Bitcoin’s network security. As the hash rate increases, so does the difficulty in attacking and hijacking the network. This security is necessary for Bitcoin’s long-term success and it’s reassuring to know that the industry is progressing in the right direction.

DeFi Under Threat

While Bitcoin’s hash rate may be increasing, the same can’t be said for the world of DeFi. The sector has seen a sharp decline since its peak in late 2020. A significant portion of this can be attributed to the decreased market liquidity. This lack of liquidity has made it harder for DeFi projects to raise capital and fund their projects.

In addition, the regulatory pressure which has been recently imposed on DeFi tokens is also contributing to its downfall. This has caused many investors to refrain from investing in the sector, leading to reduced liquidity and market capitalization.

Conclusion

The report highlights the diverging paths taken by the two main sectors of the crypto industry. On one hand, Bitcoin’s hash rate continues to increase due to the launch of new hardware, while DeFi is under threat due to decreased liquidity and regulatory pressure. It will be interesting to see how these two sectors evolve in 2021 and beyond.

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