Following the demise of the Terra-based stablecoin UST, the fiat-pegged token DAI has become the largest decentralized stablecoin in existence today. Moreover, Makerdao has regained the decentralized finance (defi) protocol’s position as the top defi protocol in terms of total value locked (TVL).
Makerdao’s DAI Regains the Top Decentralized Stablecoin Position
This month, it’s quite clear that the Terra LUNA and UST fallout has rippled across defi and the crypto ecosystem in general. Furthermore, the Terra implosion has allowed the stablecoin DAI to regain its position as the largest decentralized stablecoin in terms of market capitalization.
DAI is the fourth largest stablecoin but the top three (USDT, USDC, BUSD) are centralized stablecoin products. DAI is issued by the Makerdao (MKR) project and unlike an algorithmic stablecoin like UST, DAI leverages an overcollateralized 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 in half. More than $2.6 billion worth of DAI was removed from circulation since May 1, 2022.
On May 28, DAI’s largest trading pair is the U.S. dollar as it captures 30.96% of all DAI trades. Other large DAI trading pairs include USDC (21.18%), TUSD (17.71%), USDT (17.46%), WETH (8.17%), and EUR (2.31%).
DAI has seen $159,99 million in global trade volume during the past 24 hours and Kraken is the currently 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 16 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 capitalization.
Defillama.com statistics show that Makerdao is the most dominant defi protocol as far as TVL is concerned. Makerdao has $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.
What do you think about DAI regaining its position as the top decentralized stablecoin asset today? Let us know what you think about this subject in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
