Ethereum is a vacuum that will suck in almost “all value” in crypto - MakerDAO founder

This week, millions of dollars worth of Wrapped Bitcoin — the leading representation of BTC on the Ethereum blockchain — were deposited into decentralized stablecoin protocol MakerDAO to generate $4 million worth of the DAI stablecoin.

According to MakerDAO founder Rune Christensen, this sole transaction is extremely bullish for Ethereum’s long-term value proposition, not just the protocol he helped to create.

The importance of the 4 million DAI mint
The MakerDAO founder — one of the forefathers of the decentralized finance movement — argued that the mint of four million DAI shows the massive total addressable market that DeFi — and Ethereum by extension — has.

Dependent on ETH 2.0
Although Christensen is convinced Ethereum will capture billions (maybe trillions) of dollars worth of economic value over time, as it stands, the blockchain will have trouble doing that.

As noted by the analyst “Ceteris Paribus” on May 15, the cost to send Ethereum has effectively quadrupled since the end of April, rising to 41 Gwei as of the time of his post from the 10 Gwei baseline where the metric normally sits. This equates to around $0.20 to send ETH from address to address. (According to ETHGasStation, fees remain around the levels indicated in Paribus’ post.)


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