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.

“4 million Dai was just minted with WBTC in a single transaction. This really showcases the latent demand for non-ETH assets, and it’s the beginning of a broader trend of DeFi acting as an economic vacuum that will eventually attract almost all value to the Ethereum blockchain,” Christensen wrote in a comment that went crypto-viral among ETH supporters.

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Author: Nick Chong


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