November 20, 2019 Finance and Tech Publication

Why Dai Growing to Record High Indicates Positive Ethereum Growth

In a world plagued by banking bailouts, galloping debt and currency devaluations, a solution is needed. Enter decentralized finance, or DeFi, the future of banking where you are the bank. Ethereum is the platform of choice for DeFi, the Dai stablecoin is hitting new highs, and Maker is moving.Future Finance Based on EthereumDai is a dollar pegged stablecoin from the Maker Decentralized Autonomous Organization. Unlike traditional stablecoins such as Tether, it is not actually backed by dollars in a vault but collateral which causes its supply to fluctuate.Tether has massive trust issues as it can be minted at will with no proof of backing aside from their word. Dai only increases when the collateral staked on the network increases and most of that collateral is Ethereum.As DeFi grows, the amount of Ethereum locked in the system also increases which is why a record high for Dai is also positive for ETH.According to defipulse.com there is currently over $650 million locked in DeFi. It too is approaching its all-time high of $685 million which occurred in June this year.There is also a record amount of Ethereum at 2.42 million, or 2.2% of the entire supply locked in DeFi. The site also reports that there is $30 million worth of Dai stored in DeFi which is almost a third of its supply now that it has reached the milestone $100 million.The 100M Dai debt ceiling has finally been reached and 30M of those $DAI are locked in DeFi pic.twitter.com/SlIGbgAHWc— DeFi Pulse 🍇 (@defipulse) November 6, 2019Maker’s lending platform is the current market leader with almost a 53% share. MKR has been one of the best performing crypto assets this month with a gain of over 26% in just over a week.It is likely that Maker will continue to gain as the launch of a highly anticipated multi-collateral Dai (MCD) nears. The MCD will allow more tokens to be staked as collateral in the system, it also includes Dai Savings Rate which gives the option to earn savings simply by holding Dai.When ETH Moon?The DeFi charts are all clearly bullish yet Ethereum still slumbers. If 2017 was the year crypto boomed, 2019 is the year DeFi hits the scene. Since gains are more sedate, but far superior to anything a bank can offer, the growth is likely to be slow and steady rather than one huge speculation bubble.Ethereum has a lot of technical hurdles ahead for the network as it migrates to proof of stake. In addition to DeFi, this will provide another way to earn passive income by staking 32 ETH.Bitcoin maybe a store of wealth but Ethereum is shaping up to be the future of finance, so lending platforms such as Maker with the Dai stablecoin are expected to see a lot of steady growth as monetary systems evolve.New generations of investors will not be too confident with banks given their track record. So a decentralized solution with people in full control of their own finances is exactly what is needed.Image from Shutterstock

Related Posts

Bitcoin Wallets Under Review, Consultancy Firm Grades BTC Storage Methods

November 20, 2019

November 20, 2019

Adequate Bitcoin storage should be a top priority for any holders of the cryptocurrency. However, with so many different options...

Bitcoin Impact on Climate Change Negligible, Nearly Half of Emissions From China

November 20, 2019

November 20, 2019

Recently, it was reported that Bitcoin mining now consumes as much as a quarter percent of the entire world’s electricity...

Annual XRP Swell Pump Amounts To Bearish Ripple Retest

November 20, 2019

November 20, 2019

Each year, the annual Ripple-hosted Swell conference causes a strong XRP price pump leading up to the event, but the...

Antonopoulos Says Bitcoin Ideology Terrifies Wall Street

November 20, 2019

November 20, 2019

Cryptocurrency proponent Andreas Antonopoulos speaks about the fear that Bitcoin invokes around Wall Street. Even though there are burgeoning Bitcoin...

Emotional Rollercoaster: Bitcoin Could Follow the Amazon Fractal, Big Upside Potential

November 20, 2019

November 20, 2019

Markets, whether it’s Bitcoin or Amazon stocks, are cyclical and are driven by the same dynamics such as supply and...

ShapeShift Is Launching a Token for Free Cryptocurrency Trading

November 20, 2019

November 20, 2019

ShapeShift now offers its users fee-free trading in the form of an ERC-20 token.  The self-custody trading platform announced today,...

Bitcoin Mining Capitulation is Here at Last; Will Prices React?

November 20, 2019

November 20, 2019

Dread it. Run from it. Bitcoin (BTC) miner capitulation arrives all the same. As spotted by Charles Edwards, a cryptocurrency...

If Bitcoin Prices Loses $7,900 on Weekly, the Bull Market May End

November 20, 2019

November 20, 2019

Over the past day or two, Bitcoin (BTC) has started to settle in a price range, the low-$8,000s. As it...

Bitcoin (BTC) Price Primed For Breakdown Below $8K

November 20, 2019

November 20, 2019

Bitcoin price is extending its decline below the $8,250 resistance area against the US Dollar.The price is likely to decline...

Bitcoin And Crypto Market Remain at Risk: BCH, Litecoin, EOS, XLM Analysis

November 20, 2019

November 20, 2019

The total crypto market cap remains at a risk of a drop towards the $200.0B support.Bitcoin price is currently correcting...

Ripple (XRP) Price Trading Near Crucial Juncture, Can Bulls Make It?

November 20, 2019

November 20, 2019

Ripple price is currently correcting higher and is trading above $0.2520 against the US dollar.The price seems to be approaching...

Ethereum (ETH) Correcting Higher But Bears Remain In Control

November 20, 2019

November 20, 2019

Ethereum is currently correcting higher from the $172 support against the US Dollar.Bitcoin price is also correcting higher, but it...

Echo Bubble Narrative Grows Stronger as Bitcoin Struggles to Find Support

November 19, 2019

November 19, 2019

It has been a crazy past few weeks for Bitcoin, with the cryptocurrency’s price incurring an explosive rally that sent...

Blockchain Tech Used as Part of Chinese Calligraphy Exhibition in New York

November 19, 2019

November 19, 2019

Blockchain technology has been given a somewhat unusual demonstration in New York City this week. Organisers of a traditional Chinese...

Key Indicator Signals That Bitcoin is Bottoming as Bulls Defend Key Support Level

November 19, 2019

November 19, 2019

Bitcoin (BTC) has continued slowly grinding lower as bears gain the upper hand over bulls, and sellers have now led...