Panic and large sell-offs caused by the extended bearish trend in crypto led to panic. However, the crypto space still seems to be able to record progressive movements. A recent example is the reportShows a partnership between MakerDAO & Coinbase.
It aims to be the biggest USDC holder. The world’s largest crypto exchange Coinbase announced the partnership.
MakerDAO, the lending platform, and Coinbase Prime will each hold $1.6 million USD Coins. A report revealed that investors would receive 1.5% return on assets.
MakerDAO protocol had to conduct a vote prior to agreeing on this collaboration. This vote garnered 75% support.
Coinbase is Excited about USDC Holdings
Coinbase appears to be excited about the move, according reports. Because stablecoins recently gained more recognition. These assets are now trusted by investors to help protect their investment’s value.
Stablecoins can be depegged even if other crypto markets fluctuate occasionally. In the past, depegs were reported. However, they were only seen in specific instances like the market crash of 2022.
Many investors consider these cryptos to be an integral part of the future of finance due to their nature. A stablecoin, such as USDC can be the first to reach the top, surpassing USDT in market capital. It has been gaining steadily, covering the difference between USDT’s market cap and Tether USDT’s.
Which MakerDAO token and COIN Stock are performing now?
Coinbase expands its crypto-related activities. However, some investors are wondering if Coinbase’s stock COIN is responding positively.
Unfortunately, this stock follows the same trend as the bear market of 2022. It has been observed that the price movements in many tech stocks have been correlated.
Coinbase stock COIN was traded sideways during today’s Asian trading session. After hours of trading, the price reached $66.39. The stock’s November 2021 value shows that it lost 80% from its previous high.
MakerDAO MKR shows an October 25 loss of 6% in the early trading hours. However, Tuesday morning’s Asian trading session saw a token gain of 3.52%. This pushed the price up to $951.45. MKR suffered an 85% loss when it was compared to its record-setting November 21 price.
Which Effect Will the Move Have on DAI
MakerDAO became the “The” MakerDAO. largest holder of USDCThe protocol has been able to generate more revenue, which helps it achieve its objectives. Jennifer Senhaji from the growth and business team commented on this benefit for the lending protocol.
However, this move could affect DAI’s decentralized nature, as a central stablecoin now collateralizes it. The solution to this problem is likely to accumulate Ethereum and increase the amount of decentralized collateral.
Given that MakerDAO intends to remove DAI from the dollar-peg, this plan should be implemented within three years.
Pixabay featured image, Chart from TradingView.com