DAI Takes the Reigns as the Leading Decentralized Stablecoin by Market Capitalization – Altcoins Bitcoin News

The Terra-based stablecoin, UST was defunct and the DAI fiat-pegged token has since become the most decentralized stablecoin currently in existence. 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. The Terra implosion also allowed stablecoin DAI, which is the biggest decentralized stablecoin by market capitalization to regain its place as DAI.

DAI is fourth most stablecoin, but USDT, USDC and BUSD are the three top centralized stablecoins. DAI is issued through the Makerdao project (MKR). Unlike an algorithmic stablecoin such as UST, DAI uses an overcollateralized loan process 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. DAI worth more than $2.6 Billion was withdrawn from circulation on May 1, 2022.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. TUSD (17.71%) TUSD (17.46%) WETH (8.17%), USDT (17.46%) and EUR (2.31%) are all other major DAI trading pairs.

DAI’s global trade volume has reached $159.99 million over the past 24 hour. Kraken currently holds the highest DAI exchange activity. DAI trade volume on FTX is higher than Okex and Bittrex.

DAI ranks 16th today, while stablecoins USDT and USDC are among the top ten for market capital. Makerdao also has MKR, a native token that can be exchanged for $1,178 each unit. MKR, the largest cryptocurrency in terms of current market capitalization, is currently the 58th most valuable.

Statistics from Defillama.com show Makerdao as the dominant protocol for defi. Makerdao currently has $9.38 Billion in value and has an 8.77% dominance rating out of $106 Billion TVL. Despite being on top, Makerdao’s TVL has shed 28.59% during the past month. Makerdao’s defi protocol has seen a loss of 2.53% in the past seven days.

How do you feel about DAI being reclaimed as the most decentralized stablecoin asset? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman is the News Lead for Bitcoin.com News. He also lives in Florida and works as a journalist covering financial technology. Redman joined the cryptocurrency community in 2011 and has been an active member ever since. Redman is passionate about Bitcoin and open-source codes. Redman is a prolific writer for Bitcoin.com News, with over 5,000 articles on disruptive protocols.