Makerdao’s DAI stablecoin is now the third-largest stablecoin by market capitalization, surpassing Binance USD (BUSD), which has officially declined to $4.304 billion. DAI’s market valuation on Friday, June 16, 2023, is approximately $4.394 billion, but the number of circulating DAI has decreased by 5.7% since last month.
Stablecoin Rankings Shuffle: DAI Ascends to Third-Largest Stablecoin Position
In May 2022, terra usd (UST), now known as terra usd classic (USTC), decoupled from its $1 parity, causing its value to plummet by over 98%. As a result, BUSD emerged as the third-largest stablecoin asset. Additionally, the stablecoin token issued by Paxos held a position among the top ten largest crypto assets by market valuation for several months, until February 13, 2023, when the New York Department of Financial Services (NYDFS) instructed the company to halt the minting of BUSD.
Since then, a substantial amount of BUSD has been redeemed, with data indicating that approximately 11.8 billion BUSD has been burned following the NYDFS order. However, up until this week, or around June 15, 2023, BUSD continued to hold its position as the third-largest stablecoin. Today, that is no longer the case, as DAI has officially taken its place as the third-largest dollar-pegged token, boasting a market valuation of $4.394 billion.
BUSD‘s present market valuation is approximately $4.304 billion, which is approximately $89,993,165 lower than DAI‘s market valuation. Furthermore, DAI distinguishes itself from the two largest existing stablecoins, USDT and USDC, as it requires collateral to be locked up in order to generate new DAI tokens.
The project is also characterized by over-collateralization, necessitating additional collateral for minting DAI, and redeeming DAI involves returning DAI tokens to receive the underlying collateral. In contrast, Tether and Circle act as central issuers for USDT and USDC, backing the tokens with collateral held by the issuers.
DAI’s minting and redeeming activity has leaned more towards the redemption side in recent times, resulting in a significant decrease in the number of stablecoins since February 2022. During that period, DAI‘s market valuation was approximately $9.8 billion, but today it has decreased by 55.16%. In the past month, BUSD has experienced a 22.5% reduction, while DAI’s circulating supply has dropped by 5.7%.
What are your thoughts on the rise of DAI as the third-largest stablecoin and the decline of BUSD? Share your thoughts and opinions about this subject in the comments section below.