Ethereum’s MakerDao Gains Venture Capital Funds Backing For DeFi Boost

Over the past few months within the Crypto-focused media, the world “decentralized finance” or rather “DeFi” has been tossed around quite a few times alongside Ethereum. To the uninitiated, DeFi applications are built to handle what the conventional financial industry already does, but only within a blockchain format and through Ethereum and the tokens based on the network.

A New Way To Do Finance

The conception of DeFi came from the Ethereum network, one of the largest blockchain networks in the world. While many people within the crypto industry, especially people like Bitcoin maximalists, show skepticism for DeFi, Venture Capital Firms seem to have absolute faith in it.

The Maker Foundation, the organization behind a good chunk of the MakerDAO Ethereum application, has enjoyed the boons thereof. In a public blog post the firm posted on Thursday, the group announced that both Dragonfly Capital Partners and Paradigm had acquired $27.5 million in MKR. The two venture capital funds now own approximately 5.5% of the total supply of MKR.

Maker Coin [MKR]

Boosting MakerDAO’s Asia Presence

These purchases will be used to help Maker and its efforts to boost the adoption of MakerDAO’s native coin, DAI, within the Asian Market. The Maker Foundation’s CEO stated that Dai is still the stablecoin of choice by global markets due to the coin’s decentralization and overall stability. They also said that Dragonfly Partners and Paradigm would be capable of lending support and expertise to the cryptocurrency’s development. This, according to Maker, would deliver an “unparalleled advantage” in the innovation and adoption of Dai within Asia.

Currently, the top stablecoin within Asia is unquestionably Tether’s USDT cryptocurrency. USDT has acted as a critical fiat onramp and offramp for traders within Asia, especially so for China’s Bitcoin traders. This trend has been well established for years now.

Venture Capital Validation

In an amusing case of unintentional validation, MKR had the privilege of having the legendary Andreessen Horowitz venture capital fund back MKR with its own investment. The fund did this through its blockchain-focused investment branch: a16z crypto. While the name may be confusing, what’s factual is that both Paradigm and Dragonfly Capital Partners decided to throw their support into MKR shortly after a16z crypto.

Maker and its MakerDAO app have had an incredible boost these past few months, with its future only seeming to point skywards. What the future will hold for the crypto-backed stablecoin remains unclear, but it will undoubtedly become a world heavyweight.

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About Ali Raza

A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.