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MakerDAO Blockchain Project Sees Growth Despite Crypto Market Crash

Reading Time: 2 minutes by on February 10, 2019 Adoption, Altcoins, Blockchain, Development, Ethereum, Exchange, News
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According to MakerDAO’s report on February 7, 2019, Dai, a stablecoin that runs on the Ethereum blockchain, has recorded a 20 percent average monthly growth in its number of users based on the number of active addresses, funds transferred within a specific period, and use cases for the altcoin.

Dai Goes Bullish

Per the report, the Dai blockchain project, which was launched over a year ago, has recorded a number of successes in terms of its active addresses, use cases, and the amount being transferred by new and existing users.

Dai currently has nearly 8,200 unique addresses which are either holding the virtual currency or trading with it. According to the team, the data is based on those who have at least one Dai in their wallet.

Alternatively, 19,600 unique addresses either have or once had more than one Dai from the time the cryptocurrency was launched which is a 42 percent retention rate,  considering the lifetime of Dai.

20 Percent Increase in Dai Adoption

Furthermore, the team claims there has been a 20 percent monthly growth in the number of addresses that are either holding or trading the stablecoin given that 7,300 active addresses, of which 4,400 addresses are new, have sent or received Dai in January alone.

MakerDAO has also pointed out that there are bound to be disparities in data when other measures are used to determine the number of unique addresses or those that are actively engaged in trading Dai.

According to them, a lot of factors were put in place to arrive at these values. Some of these include ignoring proxies and smart contracts that have held the cryptocurrency for a short time as well as wallets holding less than one Dai.

As such, if these criteria were not set, then the number of unique addresses would have been 13,000 instead of the 8,200 active addresses accounted for.

Decentralized Exchanges (DEXs) Using Dai

In the same vein, a closer look was taken at the use cases for Dai. It was reported that decentralized exchanges such as 0x Protocol, Hydro Protocol, and Kyber make up nearly 50 percent of the Dai value that has been transacted.

In contrast, 23 percent of Dai transferred were ERC20 transfers made by people who sought to buy cars, pay for gifts, and even sort their mortgages; whereas 12 percent of the amount transferred was used to receive or pay back loans.

Despite this high adoption rate, it was noted that some people have stopped storing the virtual currency. In this case, 11 percent of the total current holders will either have a small amount or no Dai at all by the end of March 2019.

Dai seems to have gotten people’s attention of late, and as Alex van de Sande, an Ethereum Foundation developer revealed on January 22, his salary was also paid in Dai.

On January 8, 2019, BTCManager reported that the United Nations International Children’s Emergency Fund (UNICEF) in France is now receiving donations in Dai.

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