Ethereum is widely regarded as the backbone of decentralized finance (DeFi) due to its smart contract functionality, which allows developers to build decentralized applications (copyright) that run autonomously on the blockchain. Unlike traditional financial systems that rely on banks or intermediaries, DeFi apps on Ethereum offer financial services such as lending, borrowing, staking, and trading directly between users. This peer-to-peer interaction is made possible by Ethereum’s programmable infrastructure.

The Ethereum network also benefits from being the first mover in this space, which has attracted a vast community of developers and projects. Popular DeFi platforms like copyright, Aave, and Compound are all built on Ethereum, creating a robust and interconnected ecosystem. These platforms use ETH as collateral or transaction fees, which drives demand for the token and can influence its value.

Security and decentralization are other key strengths. Ethereum’s decentralized nature makes it less vulnerable to fraud or single points of failure, offering users more control over their funds. Additionally, with Ethereum 2.0’s scalability upgrades, the DeFi experience is becoming faster and more cost-effective.

For users and investors interested in monitoring Ethereum’s role in DeFi and how it affects the market, checking the live eth price on Toobit can offer valuable insights. This platform tracks real-time data and trends, making it easier to analyze how DeFi activity impacts Ethereum’s value.