Ethereum has continued to outperform Bitcoin, while the appetite for DeFi products has also continued to surge as the total value locked (USD) breached USD 600mln. Maker dominance now stands at 55.49% and, as a reminder, the record high in terms of USD value locked stands just under $700mln (this was achieved back in late June 2019). The last time the market got carried away with leverage products and, in particular, DAI and ETH plays, the stability fee for DAI was raised in order to re-peg the stablecoin. This time, the dynamic is slightly different and there is anecdotal evidence that DAI is actually being traded at a premium (OTC market) in China. As such, unwind in the total amount of ETH locked in the Maker credit ecosystem which peaked at around 2.11% and now stands at 1.40% may reverse course to the upside. It is also worth pointing out that over the last 24-hours, 52% of loans originated were for ETH, with 41% for DAI and 7% for USDC. Yet again, dYdX controlled the flow with a 56% share, while CompoundV2 had 25%. Now, whether Ethereum can displace Bitcoin as the number 1 cryptocurrency is a long shot but all indications are that the spread between the two will close...the moon boys will be screaming but maybe the moon that Ethereum is aiming for is at a slightly different altitude than that of its big brother.
In other news, the United States House of Representatives Committee on Financial Services has scheduled a hearing with Securities and Exchange Commission (SEC) Chairman Jay Clayton and four other SEC commissioners to discuss, among other topics, crypto. In a memorandum from Sept. 19, the Committee on Financial Services stated that it will hold a hearing on Sept. 24 entitled, “Oversight of the Securities and Exchange Commission: Wall Street’s Cop on the Beat.”
Elsewhere, Coinbase has announced that it is considering the addition of a range of new assets, namely Avalanche, Celo, Chia, Coda, Dfinity, Filecoin, Handshake, Kadena, Mobilecoin, NEAR, Nervos, Oasis, Orchid, Polkadot, Solana, Spacemesh, and Telegram.
Finally, Ripple has filed a motion to dismiss a lawsuit claiming it violated US securities laws by selling XRP. In a new filing posted early Friday, attorneys for Ripple pushed back on allegations made by XRP purchasers suing the company, its subsidiaries and executives. Notably, the motion to dismiss specifically claims that the plaintiff, Bradley Sostack, does not have standing to file a complaint, rather than address claims that XRP is a security.
Thank you for reading,
The BeQuant’s Analytics team