A new research has gone viral in the latest digital currency news, coming from the creator of MKR.tools Mike McDonald and his celebratory alarm on Twitter, where he said that according to the Ethereum blockchain – about 1 million Ether (which is 1% of the total supply) is currently locked in MakerDAO smart contracts.
As he revealed on Twitter:
— Mike McDonald (@mikeraymcdonald) November 13, 2018
For those of you who don’t know, MakerDAO is a project behind Dai, which is a second-generation stablecoin that offers issuance of US dollars on the Ethereum blockchain. Even though its mechanics are quite complex, Maker offers a helpful “for dummies” explanation that does not require one to be an expert crypto analyst in order to understand what’s it all about.
The author Gregory DiPrisco has briefly explained the difference between Dai and for instance, a traditional stablecoin like Tether, stating:
“You’re most likely familiar with stablecoins that hold USD in bank accounts and issue tokens on a blockchain that are ‘backed’ by these dollars. I call this legally-backed crypto, or an IOU coin, because if those bank accounts should ever be frozen or if the accountants defrauded token holders, the stablecoin now becomes an IOU on whatever’s left when they eventually get the bank accounts back (if they ever regain the bank accounts). Relying on the legal system to maintain crypto-tokens inserts an unreliable middle-man into the blockchain.”
What’s interesting is the following…
Even though the blockchain shows around 1 million in ETH locked up in Maker smart contracts, Dai’s token market capitalization is about a third of the figure, currently sitting at $72 million.
The way this system functions is simple – users pool Ether together (referred to as PETH) and are issued Dai tokens which are deposited and stabilized at $1. One term that is widely used in these discussions is “WETH” which is short for “wrapped Ether” and a concept of the MakerDAO.
At the time of writing, there is a total of 967,507.91 ETH locked in the primary Maker contract.
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“These preliminary findings are consistent with the literature on stock market prices and volatility,” the report on Ethereum possession concluded. “Academics have found that large anomalous fluctuations in traded volumes of particular stocks, notably the S&P 500, tend to impact volatility and not price levels.”
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“After breaking the much anticipated 6000 level BTC still looks amazing. Trend, momentum and sentiment are all clearly bullish. That said it’s at resistance and a pullback would make sense. I’d much rather be a buyer at support than a seller at resistance.’’The best cryptocurrency news sites reported on the sentiment around bitcoin and the rest of the crypto market. It seems that the community is generally optimistic. The analysts can predict that the major cryptocurrencies will sustain the momentum in the medium term just as the Ethereum (ETH) price managed to do so. The co-founder of Ethereum Joseph Lubin declared back in 2018 that the bottom of the crypto market is here just when the price of the largest cryptocurrency reached $3,150. Lubin stated that the fear is intensifying about the future of crypto and noted:
‘’I am calling the cryptobottom of 2018. This bottom is marked by an epic amount of fear, uncertainty, and doubt from our friends in the 4th and crypto-5th estates. What I’ve witnessed among the chattering class the past few weeks in response to ConsenSys 2.0 is a rather typical tune: the alarmed, the eulogistic, and the gleeful.’’Since then, the Etehreum (ETH) price surged by 70 percent year-to-date.
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