Following the demise of the Terra-based stablecoin UST, the fiat-pegged token DAI has develop into the most important decentralized stablecoin in existence at present. Furthermore, Makerdao has regained the decentralized finance (defi) protocol’s place as the highest defi protocol by way of complete worth locked (TVL).
Makerdao’s DAI Regains the High Decentralized Stablecoin Place
This month, it’s fairly clear that the Terra LUNA and UST fallout has rippled throughout defi and the crypto ecosystem basically. Moreover, the Terra implosion has allowed the stablecoin DAI to regain its place as the most important decentralized stablecoin by way of market capitalization.
DAI is the fourth largest stablecoin however the prime three (USDT, USDC, BUSD) are centralized stablecoin merchandise. DAI is issued by the Makerdao (MKR) mission and in contrast to an algorithmic stablecoin like UST, DAI leverages an overcollateralized mortgage and compensation course of.
As we speak, DAI’s market valuation is $6.24 billion however the stablecoin’s market cap is down 27.3% over the past 30 days. Whereas DAI remained steady, Terra’s implosion despatched shockwaves by way of the crypto group which in flip lower the TVL in defi in half. Greater than $2.6 billion value of DAI was faraway from circulation since Might 1, 2022.
On Might 28, DAI’s largest buying and selling pair is the U.S. greenback because it captures 30.96% of all DAI trades. Different massive DAI buying and selling pairs embody USDC (21.18%), TUSD (17.71%), USDT (17.46%), WETH (8.17%), and EUR (2.31%).
DAI has seen $159,99 million in international commerce quantity in the course of the previous 24 hours and Kraken is the at present most energetic DAI change. DAI commerce quantity can also be excessive on FTX, Okex, Bittrex, and Crypto.com.
Whereas the stablecoins USDT, USDC, and BUSD are within the prime ten by way of market cap, DAI is ranked 16 at present. Moreover, Makerdao has a local token known as MKR which is exchanging arms for $1,178 per unit. MKR is the 58th largest cryptocurrency at present by way of market capitalization.
Defillama.com statistics present that Makerdao is probably the most dominant defi protocol so far as TVL is worried. Makerdao has $9.38 billion complete worth locked which has a dominance score of round 8.77% out of the combination $106 billion TVL in defi at present. Regardless of being on prime, Makerdao’s TVL has shed 28.59% in the course of the previous month. The defi protocol Makerdao has misplaced roughly 2.53% of the 28.59% over the past seven days.
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