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USDC has become the most popular collateral asset on MakerDAO

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USDC has become the most popular collateral asset on MakerDAO

USDC has become the most popular collateral asset on MakerDAO
CONTENT

  • USDC transactions increased by 1000%

  • DeFi Market Increased 75% Since June 2020

  • DeFi Tokens Fall Amid BitMEX Scandal

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Stablecoins Stablecoins – literally translated from English “stable” coins – continue to gain popularity in the digital asset market. Since … More USDC has become the most popular collateral asset in the decentralized finance market, and the volume of transactions with this coin has increased by 1000% since June 2020.

USDC has become the most popular collateral asset on MakerDAO

DeFi Market Becomes Springboard for USDC

The stablecoin, issued by cryptocurrency exchange Coinbase and pegged to the US dollar at a 1: 1 ratio, has become the main collateral asset on the MakerDao platform. Ryan Todd, an analyst at The Block, announced this in a tweet..

Todd also said that the number of USDC transactions has increased by 1000% since June 2020. This growth is due to the popularity of decentralized finance services. Overall DeFi MarketDecentralized finance (DeFi) is financial services built on blockchain technology that offer users access to an open, efficient and … More market grew 75% and surpassed the $ 23.5 million mark in September this year. UNI remains the most popular DeFi token, which is still stored in the wallets of 90 thousand users..

USDC has become the most popular collateral asset on MakerDAO

According to research by The Block, the decentralized finance market is still at its peak, despite the fact that there has been a certain correction recently and some of the tokens have lost in value. According to the DeFi Market Profit Tracker Messari Crypto, the 46 tracked DeFi tokens have grown by 535% since the beginning of this year, up from 168% in the last 90 days. The short-term picture shows that over the past 30 days, the total loss of these tokens is 28%.

The tracker also shows that the market capitalization of the decentralized finance segment tokens is about $ 4.2 billion, that is, about 1.5% of the total capitalization of all crypto assets.

Source: Messari

Why DeFi tokens are getting cheaper

Despite the fact that the hype around decentralized finance is not fading away, some coins have already lost in value. One of the reasons for the decline in the DeFi market could be the incident with the BitMEX cryptocurrency exchange.

Experts also note that Uniswap may be involved in the massive devaluation of DeFi tokens. The protocol directs trades through preferred liquidity pools, which puts many coins at a disadvantage.

The DFOhub protocol team recently investigated and found that Uniswap is centralized in nature and allows “vampire arbitrage bots” to dump the prices of certain DeFi tokens. Experts are confident that trading bots configured to arbitrage between tokens provoke distortions and problems in the market.

USDC has become the most popular collateral asset on MakerDAO

Independent experts answered how DeFi tokens are safe for investment and how to choose coins on the market.

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