The DAO remains a success story to keep an eye on, as they have overtaken the Ethereum Foundation regarding holding Ether. Keeping in mind how this smart contract currently holds over 38% of the entire ETH supply tied up in contracts, interesting things are bound to happen to the Ethereum price.
The DAO Is The Third-highest Funded Crowdfunding Project
Just yesterday, we made a mention of how The DAO is raising a lot of money, and they were just shy of the US$20m mark. Not even 24 hours later, that target has been surpassed, as they are hovering around the US$22m mark right now. Additionally, this makes The DAO the third most successful crowdfunding project in the world, and the campaign is not over yet.
But that is not even the most impressive part, as The DAO now holds over 38% of all ETH tied up in contracts in the world today. Keeping in mind how the Ethereum Foundation holds a similar amount today, which means close to three-quarters of all ETH in contracts is locked away and not spent across exchanges. Oddly enough, the ETH price is not going up just yet.
Moreover, the DAO has recorded the highest number of Ethereum transactions to date as well. It is safe to say this project is a bigger success than most people had ever anticipated. All in all, this is very positive news for the Ethereum community, but also for blockchain and cryptocurrency enthusiasts around the world.
If this trend continues, The DAO may very well come the second most successful crowd funding project in the world as well. That spot currently belongs to Elio Motors, who raised nearly US$26m, and their campaign is still ongoing with no official end date just yet. Reaching the top spot will be a challenge, though, as Star Citizen surpassed the US$111m mark.
As The DAO secures even more funding between now and May 28, the available ETH supply will keep on dwindling. This will undoubtedly have an effect on the exchange price over the coming weeks, even though new coins are still being generated through the mining process. An increase in value for ETH makes the DAO more successful as well.
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