DAI Emerges as Third-Largest Stablecoin, Overtaking BUSD in Market Capitalization

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.

Timeline of Binance-usd, Multi-collateral-dai

Binance, the world's leading cryptocurrency exchange by trading volume, has announced the delisting of eight BUSD trading pairs from its margin trading platform. The move comes amid intensifying regulatory scrutiny and recent issues with the exchange's native token, BNB.

In a recent announcement, MakerDAO revealed that approximately 42% of the initial use cases for DAI, the stablecoin issued on the Ethereum blockchain, are within decentralized exchanges (DEXs).

In a move set to impact the decentralized finance (DeFi) ecosystem, MakerDAO, a leading Ethereum-based protocol, is gearing up for a crucial vote on a proposal to raise the savings rate for its stablecoin, DAI, to 3.33%.

The Makerdao collective is currently immersed in a discussion about the potential rise of the DAI stablecoin's savings rate to 3.3%. This suggestion was introduced by Block Analitica and revealed to the community on May 26 under the title “Stability Scope Parameter Changes #2.” Block Analitica Proposes Raising DSR to 3.

Decentralized finance (DeFi) protocol MakerDAO increased its DAI savings rate (DSR) to 1% in December 2022. The move led to over 35 million DAI being deposited within a month, as per MakerDAO.

The value of Ethereum, mainly its wrapped variant wETH, has historically been influenced by Multi-Collateral DAI repaid. Recently, there has been a surge in this metric, indicating a potential trajectory for Ethereum.

From the beginning of this year, the crypto economy has surged by 41.77%, reaching a current market capitalization of $1.17 trillion. However, amidst this growth, the stablecoin economy experienced a substantial loss of $7.3 billion within a span of 140 days.

Maker DAO is synonymous with its dai (DAI) stablecoin, but the DAO has never directly supported front-end access to the offering. Instead, user-facing products have been the purview of third-parties such as Oasis, DeFi Saver and Instadapp.

The number of wallets sending and receiving BUSD transfers slumped to a new two-year low on May 2, data from Glassnode showed.Declining trading activity comes after U.S. regulators cracked down on stablecoin issuer and crypto trust company Paxos.The Binance-branded token slumped further as protocols, investors, and platforms lost faith in the stablecoin.Meanwhile, Tether's USDT dominance over the stablecoin market strengthens while rival issuers navigate regulatory scrutiny and banking debacles. Binance USD (BUSD) transactions dipped to a fresh two-year low on May 2, 2023 months after regulatory scrutiny and widespread loss of faith punctured the stablecoin's market cap.

Statistics recorded on April 15, 2023, show that the number of coins in circulation for the stablecoin BUSD dropped below the 7 billion range to 6.68 billion, marking the lowest number of BUSD in circulation since April 2021. Furthermore, data indicates that the supply of BUSD has shrunk by 19.8% over the past 30 days.