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Friday Metrics Watch #5

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.

Ethereum Locked in DeFi

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 showed a strong w/w growth of 34% in ETH locked up, while Uniswap and Augur have seen moderate to meaningful declines.

Ethereum Locked in DeFi

Lightning Network Growth

The w/w growth in Lightning nodes was 2% this week. Network capacity is almost flat w/w, as well as BTC capacity per channel.

Lightning Network Growth

(For reference, some previous articles on LN, here)

DEX Tracker

Trading volumes on DEXs have increased on a w/w basis, with the average daily trading volume averaging 35k ETH for this week. IDEX remains the biggest DEX in terms of trading volume and DAI is the highest traded cryptocurrency on DEXs.

DEX Tracker

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. 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.

Top tokens and relayers

(For reference, some previous articles on DEXs, here and here).

Crypto Loans Tracker

Compound Loans

Total loans issued on Compound stands at approx. $1.7M for the week, up significantly from the previous week. WETH is the most borrowed cryptocurrency on Compound followed by DAI and ZRX.

Dharma Loans

Total loans issued on Dharma Lever for the last week stands at approx. $1 million for the week, a meaningful increase from the previous week. DAI is the most borrowed cryptocurrency on Compound followed by WETH and BAT.

MakerDAO Loans

DAI loans issued on MakerDAO for this week stood at $8.1 million, a slight decrease vs last week. The total outstanding DAI debt currently stands at ~$89 million. 

(For reference, some previous articles on MakerDao, here and here).

You can also check out last week’s Metrics Watch here.

Meanwhile in Crypto Wonderland….

“Resona Pulls Out of a Ripple Project” One of Ripple’s significant partners in Japan, SBI Group recently announced that a number of banks have signed to use Ripple-backed Money Tap app. The application was developed to support cashless transfer of money. It uses Ripple’s groundbreaking xRapid payment system. The latest development regarding Money Tap is that Resona Bank has become the first bank to discontinue its collaboration with Money Tap. The pull out announcement was made in an official statement and said that the cancellation will take effect on May 13, 2019.

“Coinbase Launches a Crypto Debit Card” In another example of how fiat and digital currencies are converging in the financial services industry, Visa on Thursday unveiled a debit card that lets users buy things with fiat money converted from cryptocurrency stored in online wallets. The new Coinbase Card is directly tied to a person’s cryptocurrency balance in digital wallets managed by the eponymous digital currency exchange. Coinbase enables the trading of Bitcoin, Ethereum, Ripple’s XRP and Litecoin, all of which will also be spendable through the new debit card.

“Harvard Endowment Invests in a Crypto Project” According to a preliminary circular offering statement submitted on Apr. 11th to the Securities and Exchange Commission (SEC), Blockstack LLC, a US-based blockchain software provider, has named a representative of Harvard Management as a member of the token advisory board. The circular details Blockstack’s issuance of 723 million Stack tokens for $48 million in consideration within the last year. Currently, the company is offering investment contracts, issuing 295 million securities at $0.3 per security. Two other representatives from Lux Capital and Foundation capital will also be part of the advisory board. The three representatives are limited partners of a QP fund which has purchased approximately 95.8 million Stack tokens.

“Crypto Investors Refusing to Report Taxes”As the tax deadline draws closer, crypto investors will need to review their losses and gains related to their Bitcoin and altcoin holdings, and determine if they are required to report them on their taxes. However, according to a recent Twitter poll, the vast majority of crypto investors are refusing to report their taxes, and are willing to risk stiff penalties should the Internal Revenue Service (IRS) discover the unreported earnings. This coming Monday is the tax deadline in the United States, a time when procrastinators scramble to the post office in hopes of getting their last minute tax reporting time-stamped before the deadline has passed.

Crypto Twitter Pick

What We’re Reading / Listening To

DeFi Liquidity Models by Alex Evans
A Comparison of Austrian and Keynesian Economics by Venture Stories

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Satoshi&Co Daily Crypto Newsletter

By Ramani Ramachandran and Rohit Alluri

ZPX - Daily Crypto Update