March 27, 2024
Decentralized Stablecoins Could Dominate if Crypto Realizes Its Potential: MakerDAO founder
Altcoins News

Decentralized Stablecoins Could Dominate if Crypto Realizes Its Potential: MakerDAO founder

If cryptocurrency “ends up living up to its potential,” according to Rune Christensen, co-founder of DeFi pioneer MakerDAO, decentralized stablecoins could ultimately rule the stablecoin market.

At Token 2049 in Singapore, Christensen shared his views on the potential of decentralized stablecoins like Dai and their place in the broader crypto economy.

The two talked about a presentation made at the conference by Nic Carter, a partner at Castle Island Ventures, who said that within two years, interest-bearing stablecoins might account for 30% of the market.

Christensen concurred but said that it would likely rely on the macroeconomic environment, adding that “if high inflation rates continue, then probably,” stablecoin dominance will grow.

He was asked if a decentralized stablecoin could rival that of its centralized relatives, and he responded:

Easily, I mean, I think if the space ends up living up to its potential, then decentralized stablecoins will be the entire market, like centralized stablecoins would be the edges that connect us to the legacy system.”

He continued by saying that centralized stablecoins will gain popularity if cryptocurrency “delivers” and is regulated. However, he advised that decentralized stablecoins hold the most promise:

“I think the real killer advantage of decentralized stablecoins, run by actual data like Maker, is this ability to gamify your savings.”

Rune Christensen, co-founder of DeFi pioneer MakerDAO

Christiansen suggested MakerDAO’s “Endgame Plan” around the middle of 2022. The idea is to convert DAI into a free-floating asset that is first secured by real-world assets (RWA).

DAI will be tied to the dollar for a period of three years. The protocol will intensify RWA during this time in an effort to gather as much Ether as possible, raising the proportion of decentralized collateral.

Rune thinks that Maker has established a very strong and sturdy base, but that it has been supplanted by dubious and fraudulent ventures.

To make the protocol entertaining and appealing to younger users, he wants to attempt to gamify it. He began by saying, “It’s what people want,” before adding, “Things are designed like a game, and that’s the kind of interface they will use.”

Image: Freepik

Related posts

XRP Surpasses USDC Stablecoin in Market Rankings: $1 XRP Expected Soon? 

Christian Green

Shiba Inu (SHIB) Inches Closer to $0.000008: Market Indicators Point to Potential Breakout

Cheryl  Lee

JP Morgan Analysts Cast Doubt on Ethereum Spot ETF Approval

Robert Paul

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More