MakerDAO Sells $27.5M MKR To Venture Capitals To Expand DAI Use In Asia
The Maker Foundation has just announced that two venture capital funds acquired $27.5 million worth of MKR coins. The companies involved in this transaction were Paradigm and Dragonfly Capital Partners. The information was shared by the company in a press release on December 19.
5.5% Of MKR Supply Sold To Venture Capital Firms
The new investment made by these companies would allow them to be part of the decentralized governance of the Maker Protocol that became a very important part of this blockchain network.
At the same time, these firms became net holders of around 5.5% of the total supply of MKR in the market. This cryptocurrency has a total supply of 1 million MKR.
The Maker Foundation is trying to continue its expansion in the market, specifically in Asia, where they see there is a growing demand for stablecoins. These stablecoins are cryptocurrencies that do not have a value that fluctuates at all times, instead, they have a very stable price that helps users reduce their exposure to the inherent volatility of the crypto market.
According to the CEO of the Maker Foundation, Rune Christensen, the stablecoin Dai has been growing in Asia, which could also be very positive to bring new decentralized finance (DeFi) solutions to users.
The Decentralized Finance market has also been expanding all around the world. According to DefiPulse, the total value locked in USD reached $644 million a few hours ago. Maker represents almost 50% of the total value locked in decentralized finance applications.
Other firms that have been growing in this market include Synthetix and Compound. Each of them has $166.3 million and $90 million in funds locked, respectively. With the recent investments, Maker will secure its position in the market and remain a leader in the space.