Bitmine paper loss nears $8.8B as Ether slump tests cyclical thesis

TL;DR:

The mounting unrealized losses of Bitmine shareholders and Ether’s 60% decline are signaling a critical inflection point that may define Ether’s medium-term momentum, analysts said.

Key Points:

Background:

Decentralized Finance (DeFi) refers to financial services built on blockchain networks that operate without traditional intermediaries like banks. DeFi protocols enable lending, borrowing, trading, and earning yield on cryptocurrency assets through smart contracts.

Why It Matters:

DeFi represents a fundamental reimagining of the financial system, offering permissionless access to financial services globally. DeFi developments impact how value is exchanged, stored, and utilized in the crypto ecosystem, driving innovation in financial products and services.