1. BITBILIHome
  2. Article

DAI surpasses BUSD to become the third-largest stablecoin

• 153 views

TL;DR Breakdown

  • DAI has surpassed BUSD to become the third-largest stablecoin by market capitalization.
  • DAI’s unique features, including over-collateralization and redemption mechanisms, have contributed to its rise.
  • Regulatory challenges have impacted BUSD’s market capitalization, while DAI continues to gain prominence in the stablecoin market.

Description

MakerDAO’s DAI has surpassed Binance USD (BUSD) to become the third-largest stablecoin by market capitalization. With a current market valuation of approximately $4.394 billion, DAI has now taken the coveted position, while BUSD’s market capitalization stands at around $4.609 billion at the time of writing. BUSD’s previous position as the third-largest stablecoin resulted from Terra … Read more

MakerDAO’s DAI has surpassed Binance USD (BUSD) to become the third-largest stablecoin by market capitalization. With a current market valuation of approximately $4.394 billion, DAI has now taken the coveted position, while BUSD’s market capitalization stands at around $4.609 billion at the time of writing.

BUSD’s previous position as the third-largest stablecoin resulted from Terra USD’s (UST) decoupling from its $1 parity in May 2022, leading to a significant decline in Terra UST’s value.

However, recent developments caused the reshuffled of the stablecoin rankings. Notably, the New York Department of Financial Services (NYDFS) instructed Paxos, the issuer of BUSD, to halt its minting activities. This regulatory action resulted in the redemption of a substantial amount of BUSD, eventually surpassing DAI in market capitalization.

DAI’s unique characteristics

DAI sets itself apart from other stablecoins in the market, such as Tether (USDT) and USDC Coin (USDC). Unlike its counterparts, DAI requires collateral to be locked up to generate new tokens. This over-collateralization approach ensures the stability and value of DAI, with additional collateral being necessary for minting and redeeming DAI tokens. In contrast, Tether and Circle act as central issuers for their stablecoins, backing them with collateral held by the issuers themselves.

In recent months, DAI’s activity has leaned towards redemption rather than minting, leading to a significant decrease in its circulating supply. Since February 2022, DAI’s market valuation has dropped by 55.16%, currently reaching approximately $4.296 billion. Similarly, BUSD has experienced a reduction of 22.5% in the past month, while DAI’s circulating supply has decreased by 5.7%.

As DAI climbs the stablecoin rankings, Binance‘s BUSD has faced legal challenges and regulatory scrutiny, contributing to its decline. The market capitalization of BUSD has declined to $4.3 billion amidst the regulatory drama surrounding Binance.

The decline in the stablecoin market, including BUSD, reflects the regulatory pressures and challenges the digital asset space faces. It also raises concerns about capital draining from the industry. Recent deviations of USDT from its $1 peg have also fueled fear, uncertainty, and doubt (FUD) narratives. However, Tether’s Chief Technology Officer has reassured users that the company is prepared to redeem any amount, aiming to maintain stability in the market.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:DAI surpasses BUSD to become the third-largest stablecoin

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年6月20日 03:48
Next 2023年6月20日 04:35

Related articles

  • Randal Quarles and Vivek Tyagi challenge USD Hegemony with new bank

    Description Under the bold leadership of Randal Quarles, the well-respected banking regulator of the Trump era, and Vivek Tyagi, a former risk officer at the ill-fated Silicon Valley Bank, a unique financial institution christened ‘Currency Reserve’ is set to launch. This innovative venture is striving to address the acute global shortage of tangible dollars, a situation … Read more Under the bold leadership of Randal Quarles, the well-respected banking regulator of the Trump era, and Vivek Tyagi, a former risk officer at the ill-fated Silicon Valley Bank, a unique financial institution christened ‘Currency Reserve’ is set to launch. This innovative venture is striving to address the acute global shortage of tangible dollars, a situation they perceive to be detrimental to global financial markets. Unraveling the fabric of traditional banking In a radical departure from the norm, the bank will not follow traditional banking activities like extending loans or taking deposits. Instead, its primary aim will be to vend and deliver US dollars to local banks situated outside the US. It’s a pioneering endeavor that is poised to reshape the fabric…

    Article 2023年7月1日

  • ZetaChain Secures a Whopping $27 Million in Recent Funding Round

    TL;DR Breakdown ZetaChain secures $27 million in its latest funding round with backing from major industry players like Blockchain.com and Jane Street Capital. The platform’s unique feature allows seamless connection between blockchains, including traditionally non-smart contract chains like Bitcoin and Dogecoin. Description In a significant move that underscores the growing importance of blockchain technology, ZetaChain announced on Wednesday that it has successfully raised $27 million in its latest funding round. This development is not just a testament to the potential of ZetaChain but also highlights the increasing interest of major players in the blockchain space. Contents hide … Read more In a significant move that underscores the growing importance of blockchain technology, ZetaChain announced on Wednesday that it has successfully raised $27 million in its latest funding round. This development is not just a testament to the potential of ZetaChain but also highlights the increasing interest of major players in the blockchain space. Contents hide 1 Major Players Show Confidence in ZetaChain’s Vision 2 Bridging the Gap Between Different Blockchains 3 A Flourishing Ecosystem with Diverse Applications 4 Conclusion Major…

    Article 2023年8月17日

  • Hedge funds shift focus to US stocks, dump European

    TL;DR Breakdown Hedge funds are moving their focus from European equities to American and Japanese stocks, propelled by positive economic data in these countries. Commodity Trading Advisors are specifically transitioning their investments away from Europe and Hong Kong. Investments in information technology, consumer staples, and healthcare are driving the net buying of North American stocks to a five-month high. Fueled by positive economic figures and promising investment opportunities, hedge funds are noticeably moving their attention away from European equities, turning instead to the alluring American and Japanese stock markets. Reports from major banking players including JP Morgan, Morgan Stanley, and Goldman Sachs have highlighted this trend, suggesting a potential shift in investment strategies and priorities. Capitalizing on robust economic growth A significant catalyst for this transition is the release of favorable US economic data, including an uplifting job report and the successful avoidance of a debt ceiling crisis. These developments have reinvigorated the S&P 500 Index, propelling it to its loftiest peak since the prior summer. This bullish outlook has made US stocks an attractive proposition for hedge funds looking…

    Article 2023年6月10日

  • Indian crypto exchange CoinDCX cuts 12% of jobs amid market challenges

    TL;DR Breakdown Indian cryptocurrency exchange CoinDCX has reduced its workforce by 12%, driven by challenges such as the prolonged bear market and the impact of Tax Deducted at Source (TDS) on domestic exchanges. The company has implemented several measures to adapt to the tough market conditions, including cost optimization and realignment of business priorities, and has provided a support package for the affected employees. Description Indian crypto exchange CoinDCX announced a reduction in its workforce by approximately 12%. The decision, described as difficult by the company’s founders, Sumit Gupta & Neeraj Khandelwal, comes in response to the prolonged bear market and the impact of India’s TDS (Tax Deducted at Source) on domestic exchanges. The crypto market’s tough macro conditions have … Read more Indian crypto exchange CoinDCX announced a reduction in its workforce by approximately 12%. The decision, described as difficult by the company’s founders, Sumit Gupta & Neeraj Khandelwal, comes in response to the prolonged bear market and the impact of India’s TDS (Tax Deducted at Source) on domestic exchanges. The crypto market’s tough macro conditions have significantly affected…

    Article 2023年8月23日

  • Balancer protocol suffers $900,000 loss in latest exploit

    TL;DR Breakdown Ethereum-based Balancer protocol has suffered a loss of $900,000 in a vulnerability exploit. Immediate response and mitigating efforts. Description In a recent incident, the Ethereum-based automated market maker and decentralized finance protocol, Balancer, fell victim to an exploit that resulted in the loss of nearly $900,000. The breach occurred shortly after the protocol had disclosed a vulnerability affecting multiple pools. Balancer confirms vulnerability breach The security breach was confirmed on social media platform X … Read more In a recent incident, the Ethereum-based automated market maker and decentralized finance protocol, Balancer, fell victim to an exploit that resulted in the loss of nearly $900,000. The breach occurred shortly after the protocol had disclosed a vulnerability affecting multiple pools. Balancer confirms vulnerability breach The security breach was confirmed on social media platform X (formerly Twitter) on August 27. Balancer’s team acknowledged the exploit and informed the community that they had taken mitigation measures to reduce risks. However, the affected pools could not be paused, and users were advised to withdraw their funds from these pools to prevent further exploits….

    Article 2023年8月29日
TOP