Open finance is gaining gradual adoption despite the slow the stagnant performance the cryptocurrency industry is showing since the “Black Thursday crash” on Mar. 12. dYdX, a decentralized lending platform, recorded a milestone in the early trading hours on Saturday reaching the billion-dollar mark in total loans originating from the platform.
In the past year, dYdX has originated well over $1 Billion in loans ???? pic.twitter.com/ZJynUQ7JXy
— dYdX (@dydxprotocol) April 18, 2020
The increasing interest in Defi products may set bullish sentiments on Ethereum as the lending Defi products grow in the near future.
dydX records $1.1 billiard in loans borrowed
According to LoanScan, a Defi tracking aggregator, dYdX, is witnessing a meteoric rise in the number of loans borrowed on the exchange. The decentralized app has distributed over $1.1 billion in loans on the platform over the past year.
Ethereum (ETH) is the leading borrowed asset on dYdX with a total borrowed amount of $$516,647,969representing 45% of the total amount borrowed over the past year. Dai (which split to a multi-asset and single-asset backed token –SAI) and USDC recorded a total of $378,674,732 (SAI -$126,538,385) and $128,080,455 respectively.
dYdX leads in loans originated on the platform in the decentralized lending space with Compound and Maker also bootstrapping some loan facilities to their users. Over the past year a total of $310,299,625 and $215,706,480 in loans were disbursed from the respective platform.
Ethereum set to benefit from swelling Defi markets?
The growth in the Defi space has been nothing short of remarkable as these platforms offer the unbanked and underbanked citizens quick financial access. Could this growth positively impact the price of Ethereum in the coming weeks?
Since Mar. 12 capitulation to sub-$100 levels, the crypto field has responded rather bullishly with ETH/USD soaring over 80% in that time period. Currently, the second largest crypto trades at $182 touching a key resistance which if broken may spark a bullish momentum in the price in the coming days.
ETH/USD crossed above the SMA 50 line which offers a near term resistance level at $160. Furthermore the relative strength resistance (RSI) is oscillating at 61 (in a buy zone) offering a bullish price outlook for ETH. Can the swelling DeFi market tip the bull market in upcoming days?
Image from LoanScan.
