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DAI stablecoin recorded growth rate of approximately 20% per month in 2019, claims Maker Dao report

Biraajmaan Tamuly



DAI stablecoin hits exponential growth of 20% per month since start of 2019, claims Maker Dao report
Source: Pixabay

Since the start of 2019, stablecoins have found a new level of importance following the involvement of major financial and non-financial institutions such as JP Morgan Chase and Facebook.

Justin Sun, CEO of TRON Foundation, had also spoken highly about the significance of stablecoins on various occasions and despite the Tether-Bitfinex fiasco, the popularity of stablecoins has failed to drop significantly.

Now, according to a report released by MakerDao, the stablecoin Dai, has exhibited consistent growth on the Ethereum ecosystem. Between February and June 2019, Ethereum developers have added new Dai integrations, each of which have assisted Dai use-cases in gaining the attention of the larger crypto-community.

Source: MakerDao

From the chart above, it can be observed that Dai adoption experienced a steady growth of approx 20% per month since the start of January 2019. In terms of volume, a significant amount of sum was also transferred over the past month. It was reported that 1.4 billion Dai were transferred in May. It was also listed that around 16,300 unique addresses were involved in the transactions, almost double the activity recorded in January.

The slight dip witnessed in the circulation charts of Dai is a pre-designed mechanism owing to Stability fee adjustment, the report said. The mechanism keeps the valuation of Dai at $1.

Source: MakerDao

Another major statistic released by the report was the involvement of Dai in the number of dApps locked up with the stablecoin.

Dai was reported to be at its all-time high in terms of dApps, which was mainly due to the traffic recorded by Dai on decentralized crypto-exchanges such as Eth2DAi and Uniswap.

Keeping in line with the same stats, decentralized exchanges were the top use-cases for Dai, which accounted for roughly 70% of all Dai transactions in and around the exchanges.

Finally, the reported concluded,

“To date, 325 million Dai have been generated through the Maker Protocol. Of that, 243 million Dai have been repaid; the outstanding 82 million Dai are collateralized by roughly $433 million worth of Ether at the time of this writing.”

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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.


Ampleforth could help create next-gen synthetic commodities for portfolio diversification, claims Blockfyre report




Ampleforth could help create next gen synthetic commodities for diversification of portfolios claims new Blockfyre report
Source: Unsplash

Ampleforth was the first token to successfully complete an IEO on Bitfinex. This IEO caught the attention of a lot of users in the cryptospace, as the $5 million hard cap was sold out within the first 11 seconds. A new report by Blockfyre details how Ampleforth could pave the way for a new asset class for portfolio diversification in the future.

The report also highlighted a feature of Ampleforth that allows a flexible supply that adjusts to the market demand, while price simultaneously finds equilibrium. The token also aims to tackle the strong correlation that most cryptocurrencies share with Bitcoin.

Synthetic Commodity

Ampleforth project has the ability to create synthetic commodities that are disconnected when it comes to price fluctuations due to correlations, which is a common problem faced by both cryptocurrencies and traditional asset classes. Although Bitcoin was created to tackle problems that fiat currency inherently has, it still has some correlation issues.

In a world where traditional assets are widely affected by macroeconomic and global political scenarios, Ampleforth aims to create a new asset class, Synthetic Commodity, to tackle this problem.

The report stated,

“BTC as a synthetic commodity doesn’t show correlation to traditional markets such as stock stocks and bonds. Thus it reflects a potential good investment for portfolio diversification, in order to tackle macro-economic recession”

Although BTC is an uncorrelated asset, other cryptocurrencies are widely correlated to it. Ampleforth’s protocol introduces synthetic assets that “will always find a price-supply equilibrium by adjusting the price due to demand.” The report added,

“It needs to be emphasized, that these price-supply information will always be distributed amongst all token holders, so the supply of all token holders will decrease / increase. As a result, the overall cut of the total supply for each person will always remains the same.”

The report further said that if successful, Ampleforth will directly compete with Bitcoin’s $145 billion market cap and also against traditional asset market-based in fiat.

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