Tokenized lending and debt trading platform, Dharma Protocol, has announced in a series of official Twitter posts that users will not be able to make fresh deposits or take new loans until the team implements a couple of new developments.
It should be noted that on August 7, 2019, the San Francisco-based cryptocurrency startup had admitted that there was a front-end bug which caused all activities to be frozen on the platform with reduced overall usage.
The first half of 2019 brought a lot of media hype to Dharma.
In February, Dharma raised $7 million in funding to enable users to borrow and lend cryptocurrencies peer-to-peer.
However, in the last month, outstanding loans on Dharma went down from $10.43 million to $7.29 million.
Its competitor, Compound v2, on the other hand, has been gaining market share at an alarming rate, going from $6.3 million on June 1, 2019, to $43 million as of August 8, 2019.
GetNuo is about to launch its new campaign which could be enough for them to overtake Dharma’s dormant share in Ethereum’s robust DeFi ecosystem.
Dharma currently has a market share of five per cent. The recent inactivity of the firm can cause this rate to fall and cost them their customers, in spite of having a well-functioning product. They have neither shared the reasons behind the halt in services nor have they responded to various queries made on social media. They only assured the public, in the rest of their posts that they were “hard at work” and that the “next chapter of this story is going to be exciting.”
The firm is among the top 10 in terms of value locked on the platform. Although, due to the rapid nature of the growth of this technology, Dharma’s position is under a long-term threat.