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$234 million worth of Ethereum tokens held in MakerDAO smart contract as collateral




Source: Unsplash

The Ethereum tokens held as collateral on MakerDAO smart contract has been on a constant rise over the past few months. Kevin Rooke, a Twitterati has pointed out that the number of tokens on the smart contract currently accounts to over 2 million Ethereum, worth around $234 million.

MakerDAO is a decentralized autonomous organization, which has a stable coin, provides collateral loans and is known for its decentralized governance. DAI, the platform’s stablecoin, is pegged against the US Dollar. It was created with the intention of solving the high volatility of the cryptocurrency market in terms of price.

The token is used on the platform as a part of its collateral system. In this system, investors can leverage their Ethereum tokens in order to generate DAI. Following this, users can use this token for other purposes. Here, the leveraged Ethereum tokens are considered as collateral and users will gain control over this token only when they pay back the DAI tokens they had taken.

He said on Twitter:

“2 million ETH ($234M) is held in Maker’s smart contract. That figure is growing 28% per month since Nov 2018. If this continues, they’ll have: 4.1 million ETH in 3 months 9 million ETH in 6 months 40.8 million ETH in 1 year There are only 104 million ETH in circulation today.”

MakerDAO and Ethereum | Source: Twitter

MakerDAO and Ethereum | Source: Twitter

MakerDAO data | Source: MKR Tools

MakerDAO data | Source: MKR Tools

Chelsea Palmar, a Twitterati said:

“I’m slightly confused re: the distinction between this milestone, & yr earlier report on the dearth of dApp activity. It’s mainly a terminology thing – are we considering DeFi smart contracts like @MakerDAO “dApps”, or something else?”

She further added:

“I consider this an important distinction to highlight & parse because I’m very rooted in the maximalist scene, & my bitcoiner peers use the “no dApp activity” headline to mock $ETH. Yet MakerDAO has successfully captured a huge amount of active ETH, and is growing steadily…”

AlsoMahler, a Redditor said:

“I’m conflicted between “yay, a good use case for ETH” and “Uhoh that’s too much ETH in one contract”.”

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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.


Bitcoin Dominance Index [BDI] falls short of Bletchley Ethereum Token Index [BETI] in 2019

Biraajmaan Tamuly



Bitcoin Dominance Index [BDI] outperformed by Index based on the Ethereum blockchain in 2019
Source: Pixabay

One of the key factors which is often used to represent or indicate the potential of a particular cryptocurrency’s growth is its market capitalization. When the market capitalization of a coin or token showcases a positive hike, it usually has a positive impact on that particular asset’s market.

According to LongHash, the Bitcoin Dominance Index [BDI], which is used to measure Bitcoin’s market cap had been the dominant index since the beginning of 2019. It was observed that the BDI improved from 53 percent to 58 percent over the past few weeks after the largest crypto-asset underwent multiple price hikes.

XRP, which dominated Bitcoin by 1,600% back in 2017 on cryptocurrency exchange Bittrex in 2017, was currently down by almost 50% against Bitcoin in 2019. Ethereum [ETH] fared better comparatively, but was still down by 14% against the Bitcoin.

However, the Bletchley Ethereum Token, a token built on top of Ethereum, seemed to have outperformed Bitcoin this year.

The Bletchley Ethereum Token Index [BETI] can be utilized by investors for their allocation to tokens placed on top of the Ethereum blockchain. However, it should be noted that Ethereum is not a part of the index as it is an independent entity. The BETI is a weighted index, which means that the tokens with dominant market caps will take up a larger part of the index and the re-balance will take place at the end of a particular month.

For example, Tron [TRX] and Binance Coin [BNB] currently take up more than half of the BETI’s Weighted Index. Since the launch of their DEX, BNB has enjoyed a lucrative year with multiple hikes bringing the coin to $30 from under $6. Tron also witnessed major growth in market cap as it was up by 40% in comparison to the US dollar.

However, it is important to note that the major tokens on the BETI’s weighted index have all launched their own blockchain, at press time. Hence, it can indicate that the dominance enjoyed by BETI over the BDI over the last few months could point to a situation where the Ethereum blockchain was preferred for the launch of various tokens.

Despite the aforementioned reason, it is safe to state that Bitcoin was not the only entity which dominated the crypto-space this year.

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