MakerDAO has become the first DeFi protocol to reach ten figures in collateral value. Maker regained its top runner position by attaining a billion dollars locked value as its primary collateral as Ethereum rose 40% last week.
According to DeFi tracker DeFi Pulse, the milestone means that users have over $1 billion in the protocol for lending purposes. This gives MakerDAO 28% dominance in the DeFi space. According to the available statistics, Compound and Synthetix have roughly$764 million and $423 million respectively in Total Value Locked (TVL) Aave, Balancer, and Curv Finance are part of the top 10 protocols.
Appreciation of the Cryptocurrency
This means that DeFi protocols have a cumulative $3.60 billion in total value locked. It has taken at least five months for the protocols to rise from $2 billion from $1 billion in February. Reacting to the news, MakerDAO’s David Freuden says the announcement marked a big day for MakerDAO. The co-author of “DAO: A Decentralized Governance Layer for the Internet of Value” opined that innovation in DeFi would increasingly challenge the premise of centralized finance.
The amount of ETH locked in MakerDAO Vaults rose by about 300,000 ETH or $9.6 million at the current price. The surge in price to $1 Billion didn’t come from an additional amount of ETH entering the protocol but rather the appreciation of the cryptocurrency in the recent price surge.
Beyond the Recent Resistance Levels
Maker has put a debt ceiling in place that ensures the DAI supply doesn’t catapult and create a supply shock. DAI raised the cap from 180 million to 220 million on July 22, 2020. With that, it only took five days for DAI to mint 213 million, ensuring that the new ceiling was utilized in its totality.
The last weekend was profitable and important for most cryptocurrency traders. The bulls started their pushover last Saturday, and the climax came on Sunday. The Bull Run was experienced by many coins that broke beyond the recent resistance levels and especially for Bitcoin, the king of crypto. Bitcoin’s breakout started on Friday, climbing from $9,500 to a high of over $10,200.
Popularity around DeFi Projects
Ethereum has also experienced an upward streak, and it could have triggered the wider market rally. The Ethereum Bull Run is most likely associated with the Fear of Missing Out (FOMO) as the Ethereum 2.0 approaches. The largest Altcoin topped $325 at the beginning of the week, and the coin is ridding past all resistance levels. Some analysts believe that the current bull wave could see the asset reach $500. The popularity around DeFi projects has been increasing, and Ethereum is considered a top contender to be a market leader.