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 Top Position of Decentralized Stablecoin
This month, it’s pretty clear that the fallout from Terra LUNA and UST has rippled through the challenge and the broader crypto ecosystem. Additionally, the implosion of Terra has allowed the DAI stablecoin to regain its position as the largest decentralized stablecoin by 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% in the past 30 days. While DAI held steady, Terra’s implosion sent shockwaves through the crypto community which in turn halved TVL in defiance. Over $2.6 billion worth of DAI has been taken out of 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 recorded a global trading volume of $159.99 million in the last 24 hours and Kraken is currently the most active DAI exchange. DAI trading 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 when it comes to TVL. Makerdao has a total value locked of $9.38 billion, which has a dominance rating of around 8.77% out of the total $106 billion TVL in challenge today. Despite being at the top, Makerdao’s TVL has lost 28.59% over the past month. The Makerdao challenge protocol lost around 2.53% of 28.59% in the last seven days.
