Currently, DeFi along with the Lightning Network are probably the two most interesting user applications out there in the crypto space currently. To present our readers with updates on how fast the DeFi and Lightning Network ecosystems are going, we wanted to make our Friday edition of newsletter primarily dedicated to tracking the progress of key metrics in both these ecosystems. In Satoshi&Co future Friday editions, we will therefore try to present to our readers more data-driven research on different components of the DeFi stack, LN as well as other adjacent ecosystems such as DEXs (decentralized exchanges) and stablecoins.
MakerDAO still accounts for a lion’s share of ETH locked up in collateral, with more than 2.1 million of ETH locked up. Compound and Augur showed strong w/w growth of 27% and 38% in ETH locked up, respectively, while dYdX and Maker have seen moderate declines.
The w/w growth in Lightning nodes was 2% this week. Network capacity increased by 1.6% and BTC capacity per channel increased by 2% this week.
(For reference, some previous articles on LN, here)
Trading volumes on DEXs have declined on a w/w basis, with the average daily trading volume averaging 30k ETH for this week. IDEX remains the biggest DEX in terms of trading volume and DAI is the highest traded cryptocurrency on DEXs.
Btw, we are quietly excited by the progress that our own Fordex has made within a few weeks of its launch; it is now among the top 5 0x relayers globally, with daily volumes between $15-20k. This is hugely promising, as this volume is completely organic, with no wash trades, zero marketing, minimal PR and no market-maker engagements. We have covered DEXs a fair bit earlier, including here, and believe they are foundational to the emerging DeFi stack.
Total loans issued on Compound stands at approx. $667k for the week. WETH is the most borrowed cryptocurrency on Compound followed by DAI and ZRX.
Total loans issued on Dharma Lever (still in alpha) for the last week stands at approx. $181k for the week, a meaningful decrease from the previous week. DAI is the most borrowed cryptocurrency on Compound followed by WETH and BAT
DAI loans issued on MakerDAO for this week stood at $8.7million, a significant increase vs last week. The total outstanding DAI debt currently stands at ~$89 million.
You can also check out last week’s Metrics Watch here.
“Bitcoin’s Google Searches Rising Again” It’s been a while since Bitcoin searches were so high. In fact, not since the peak of Bitcoin’s popularity from 17-23 Dec has interest in the number one cryptocurrency been so widespread. Breaking the numbers down a little further, you’ll see that Nigeria and South Africa are leading the charge. Bitcoin searches are also high in the Netherlands and Austria, although that could also coincide with the fact that both countries are hosting major Blockchain events this week.
“Russia’s Facebook Working on its own Crypto” Like Facebook, Russia’s largest social media network, VKontakte, is reportedly working on its own cryptocurrency. According to a report by Russian news outlet RNS, VKontake (VK) is currently in the development phase of a native cryptocurrency. The news agency cites that this information is from a source familiar with the company’s plans, which provided the publication with an internal presentation about the company’s cryptocurrency initiative. In the presentation, RNS reports, the company states it is considering rewarding users for their time spent on the platform as well as other specific activities. Users could be rewarded in the new coin by posting quality content, for example, or by curating other users’ content.
“CAD-pegged Stablecoin” Cryptocurrency exchange Coinsquare is launching a stablecoin pegged 1:1 to the Canadian dollar (CAD). The exchange plans potential roles for its new “eCAD” token in cross-border payments and remittance, peer-to-peer lending, merchant payment solutions, as well as trade settlements and forex conversions. The firm pledged that each eCAD token will have one Canadian dollar backing it in reserve. While it claimed transparency in the announcement, it did not detail if and how proof of its reserves might be made public.
“Minnesota’s New Law for Crypto Mining”The United States county of Missoula, in the state of Montana, has adopted a regulation for cryptocurrency mining, local media outlet the Missoulian reports on April 5. The focus of the new law is seemingly on the possible effects of cryptocurrency mining on global warming and electronic waste. Also, from now on, crypto miners in the county will be able to establish their operations only in light industrial and heavy industrial districts and only after they have been reviewed and approved as a conditional use.