Ethereum

After the Bitcoin rally subsided back in 2018, there was a lot of talk that the world’s second-biggest cryptocurrency, Ethereum, had the potential to eventually upstage BTC. It did not seem like the most unrealistic claim at the time, but over the past months, it has become abundantly clear that this is unlikely to happen anytime soon.

Over the course of the past few days, ETH has had a disappointing time, and the price of the token has continued dropping. However, it was the weakness shown by the stablecoin DAI that was the true revelation during the ETH drop.

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About DAI

Unlike other stablecoins, which are backed up by fiat currencies in some ration, DAI is a decentralized stablecoin that is collateralized with Ethereum and developed by MakerDAO. As the price of ETH continued to slip, DAI managed to hold its own against the United States Dollar for some time. The slip in ETH has been quite dramatic over the course of the week so far, and at one point on Tuesday, it lost as much as 18% within a matter of two hours. The price slumped to $152 from a high of $199. Eventually, it seemed to have settled at a price point of $171.

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>> Bitcoin Extends Decline as Altcoins Stabilize Following This Week’s Slump

There has been a lot of issues with regards to the Ethereum network over the past few days, and that also resulted in trouble with executing Collateralized Debt Position (CDP) on the DeFi Saver. It is another indication of the sort of disruption that can hit any stablecoin network if the collateral in question is in any kind of trouble. At this point in time, MakerDAO has no other option but to depend on the Ethereum network.

However, the company has stated that it is going to go for other assets to serve as collateral in the future. Until that happens, DAI will continue to have to depend on the Ethereum network for its stability and well being.

Featured image: DepositPhotos © Primakov

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As Ethereum Price Drops, DAI Holds Well Against USD 1
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bitcoin
Bitcoin (BTC) $ 39,225.00
ethereum
Ethereum (ETH) $ 2,360.72
tether
Tether (USDT) $ 1.00
binance-coin
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cardano
Cardano (ADA) $ 1.34
xrp
XRP (XRP) $ 0.662810
dogecoin
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usd-coin
USD Coin (USDC) $ 1.00
polkadot
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binance-usd
Binance USD (BUSD) $ 1.00
USD
EUR
GBP
bitcoinBitcoin (BTC)
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$ 1.00
bitcoin-cashBitcoin Cash (BCH)
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bitcoinBitcoin (BTC)
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ethereumEthereum (ETH)
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0,849524
bitcoin-cashBitcoin Cash (BCH)
429,42
litecoinLitecoin (LTC)
117,15
bitcoinBitcoin (BTC)
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CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin39,774 1.56 % 15.33 % 24.61 %
Ethereum2,376.8 0.51 % 9.90 % 24.72 %
Tether1.000 0.05 % 0.03 % 0.23 %
Binance Coin322.16 1.09 % 7.80 % 5.88 %
Cardano1.350 0.57 % 11.78 % 13.65 %
XRP0.6649 0.31 % 10.91 % 12.73 %
Dogecoin0.2244 0.52 % 13.77 % 21.76 %
USD Coin1.010 0.35 % 0.39 % 0.00 %
Polkadot14.97 1.63 % 10.78 % 17.20 %
Binance USD1.010 0.50 % 0.89 % 0.54 %

bitcoin
Bitcoin (BTC) $ 37,148.00
ethereum
Ethereum (ETH) $ 2,206.14
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 304.79
cardano
Cardano (ADA) $ 1.24
xrp
XRP (XRP) $ 0.620285
usd-coin
USD Coin (USDC) $ 0.996140
dogecoin
Dogecoin (DOGE) $ 0.201665
polkadot
Polkadot (DOT) $ 13.85
binance-usd
Binance USD (BUSD) $ 0.993797