Strong Performance in Smart-Contract Platforms
By Christopher Matta, Co-Founder of Crescent Crypto Asset Management
Multi-currency indices outperformed Bitcoin in both February and March, led by strong performance in smart-contract platforms and Litecoin.
Over 16 million Ether (ETH) were raised through initial coin offering (ICO) projects in 2017 and 2018. A total of almost 10 million ETH has already been sold to the market, which caused significant downward pressure through the end of last year. In 2019, selling pressure has eased as new token sales have cooled off and there are fewer ICO projects liquidating their ETH treasuries.
Additionally, Ether has seen significant growth in the decentralized finance (DeFi) space. Over two million ETH are currently staked in DeFi apps such as MakerDAO, Compound, and Augur, which effectively reduces the circulating supply.
Ether remains a “proof of work” system – similar to Bitcoin – as the development community is boldly working towards a staking-based system in “Eth 2.0” or “Serenity” to improve scalability.
CCMIX versus MVDA10 versus MVETH versus MVBTC
Source: MV Index Solutions, Crescent Crypto, Delphi Digital.
About the Author:
Christopher Matta is the Co-Founder of Crescent Crypto Asset Management, where he manages the creation of cryptocurrency indices. Prior to Crescent, Chris was a Financial Investment Professional at Goldman Sachs.
The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.