Ethereum rules the roost in terms of loans issued; figures cross $150 million mark in Q2 of 2019

The use case of cryptocurrencies has been the claim to fame for the industry and some parameters are already reflecting that ideology. Major digital assets like Bitcoin and Ethereum have been in the news multiple times this year, not just because of their price hikes and an increase in market caps, but also for the efforts to propagate mainstream adoption.

According to a recent analysis by Ryan Sean Adams, Founder of Mythos, it was discovered that in the last quarter, Ethereum money robots issued a whopping $155 million in loans to users. This was a direct bump from Q4 of 2018 and Q1 of 2019. During the second quarter of 2019, ETH-based protocols like Dharma, dydX, Compound v1, Compound v2, and MakerDAO combined to produce a total of $115.139 million in terms of loans.

When compared to previous quarters, it is evident that MakerDAO is the one lending protocol generating consistent levels of loans. In the last quarter of 2018, MakerDAO produced $73.689 million, while in the first quarter of this year, the protocol was responsible for just $59.994 million. The second quarter of 2019 was MakerDAO’s biggest win, with the protocol generating loans amounting to a significant $82.171 million.

One of the biggest changes across the three quarters was the weighted contribution increase of Dharma, dydX, Compound v1 and Compound v2. Q4 of 2018 recorded the four protocols contributing just $7.8 million together, while the number fell to $7.3 million during Q1 of 2019. Q2 of 2019 was a game-changer for the protocols as all the four teamed to issue approximately $73 million in loans.

One user, @MrStealYaCryto, inquired,

“Isn’t this kinda the same as margin trading? So why $eth and not just king $BTC?”

To this, Ryan Adams, replied,

“This is happening w/ BTC in centralized platforms, like BitMex, Genesis, but this cannot happen in a decentralized protocol w/ BTC because the Bitcoin network is not programmable. I expect we’ll see tokenized BTC (e.g. WBTC) on Ethereum that allows this soon.”

Ethereum’s increasing dominance comes at a time when many proponents of the space have claimed that 2019 and 2020 will be the time for altcoins to boom. The ‘alt season,’ as it is popularly called, is speculated to start once Bitcoin settles into more non-volatile price movement.