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Maker DAO Immediately Hurt by Ethereum (ETH) Price Crash

Published 11/25/2019, 06:24 AM
Updated 11/25/2019, 07:41 AM
 Maker DAO Immediately Hurt by Ethereum (ETH) Price Crash
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ETH/USD
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Maker DAO was booming, with interest in DeFi increasing until mid-November. The practice of crypto-collateralized lending boomed at a time when Ethereum (ETH) prices remained stable, and Bitcoin (BTC) appreciated.

However, the recent market shakedown revealed the fragility of the DeFi sphere. ETH crashed from levels above $180, correcting to $138.33. For Maker DAO, this meant an immediate outflow of staking, as well as liquidations.

Immediately, the supply of single-collateral DAI shrank from above 102 million to 84 million. The supply shrank just days after Maker DAO held a vote to increase the maximum supply to 120 million DAI.

Collateralization also fell to 295%, from a recent peak above 360%. ...

This article appeared first on Cryptovest

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