Makerdao's DAI Regains the Top Decentralised Stablecoin Position
The demise of the Terra-based stable coin UST has led to the fiat-pegged token DAI becoming the largest decentralised stable coin in existence today. Moreover, Makerdao has regained the decentralised finance (defi) protocol’s top position in terms of total value locked (TVL).
DAI Retains the Top Spot of the Defi Protocol in Terms of TVL
The Terra LUNA and UST fallout have rippled across defi and the crypto ecosystem, this month. The Terra implosion has allowed the stablecoin DAI to regain its position as the largest decentralised stable coin in terms of market capitalisation.
DAI is the fourth largest stablecoin but the top three (USDT, USDC, BUSD) are centralised stablecoin products. DAI is issued by the Makerdao (MKR) project and unlike an algorithmic stable coin like UST, DAI leverages an over-collateralised loan and repayment process.
Today, DAI’s market valuation is $6.24 billion but the stablecoin’s market cap is down 27.3% over the last 30 days. While DAI remained stable, Terra’s implosion sent shockwaves through the crypto community which in turn cut the TVL in defi to half. More than $2.6 billion worth of DAI was removed from circulation on May 1, 2022.
On May 28, DAI’s largest trading pair is the U.S. dollar which has captured 30.96% of all DAI trades. Other large DAI trading pairs include USDC (21.18%), TUSD (17.71%), USDT (17.46%), WITH (8.17%), and EUR (2.31%).
DAI has seen $159,99 million in global trade volume during the past 24 hours and Kraken is currently the most active DAI exchange. DAI trade volume is also high on FTX, Okex, Bittrex, and Crypto.com.
While the stablecoins USDT, USDC, and BUSD are in the top ten in terms of market cap, DAI is ranked 16th today. Additionally, Makerdao has a native token called MKR which is exchanging hands for $1,178 per unit. MKR is the 58th largest cryptocurrency today in terms of market capitalisation.
Defillama.com data show that Makerdao is the most dominant defi protocol in terms of TVL. Maker Dao has a $9.38 billion total value locked which has a dominance rating of around 8.77% out of the aggregate $106 billion TVL in defi today. Despite being on top, Makerdao’s TVL has shed 28.59% during the past month. The defi protocol Makerdao has lost roughly 2.53% of the 28.59% during the last seven days.
0 Comments