- DAI surpassed BUSD in marketcap because of legal troubles faced by Binance.
- The integration of rETH as collateral and raised debt ceiling contributed to DAI’s growth and stability.
DAI, the stablecoin issued by MakerDAO [MKR], has stood at the fourth position in terms of marketcap for quite some time. BUSD, the stablecoin issued by Binance [BNB], stood at number three. However, due to the recent lawsuit of SEC against Binance, many investors have lost faith in BUSD.
Realistic or not, here’s MKR’s market cap in BTC’s terms
DAI takes the lead
As a result of the declining trust in BUSD, its marketcap experienced a significant decline, paving the way for DAI to claim the third position. At press time, DAI’s marketcap stood at approximately $4.94 billion, according to data from CoinMarketCap.
Moreover, DAI has witnessed a remarkable surge in network growth, suggesting heightened interest from new users and addresses. Additionally, the velocity of stablecoins increased as well, indicating a rise in the frequency of DAI transfers.
Source: Santiment
The growth of DAI is poised to expand further due to recent collaborations initiated by MakerDAO. In line with the latest Executive Vote, the integration process of rETH (Rocket_Pool staked ETH) as a fresh collateral into Spark Protocol was underway.
The integration of rETH into Spark Protocol is expected to have a positive impact on DAI. This development enables rETH holders to access DAI loans at highly favorable interest rates, which is likely to stimulate demand for DAI. This increased demand will contribute to improved liquidity and stability for DAI, ultimately enhancing its value and market position.
Furthermore, the Spark Protocol has actively raised the D3M debt ceiling from 5 million DAI to 20 million DAI. This adjustment provides an additional liquidity capacity of 15 million DAI, which can be borrowed through Spark’s lending platform.
By expanding the D3M debt ceiling to 20 million DAI, the Spark Protocol contributes to the liquidity enhancement of DAI while meeting the growing demand for borrowing. This expansion further strengthens the stability and utility of DAI within the ecosystem.
⚡ rETH is coming to Spark ⚡
rETH (@Rocket_Pool staked ETH) is being onboarded to Spark Protocol as a new collateral, as per the latest Executive Vote.
rETH holders will be able to leverage their holdings by borrowing DAI at the best rates on https://t.co/SgPD7uamCM.
— Maker (@MakerDAO) June 15, 2023
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Will MKR holders ‘make’ it?
The growing dominance of DAI may also impact the state of the MakerDAO protocol. According to data from Token Terminal, fees generated by Maker experienced a substantial 62.3% increase over the past month. However, the total value locked (TVL) in Maker continued to decline, presenting potential challenges for the protocol.
Source: Token Terminal
Meanwhile, the MKR token, the native governance token of MakerDAO, has witnessed a price increase in the past week. This surge in price has captured the attention of significant investors, commonly referred to as whales, indicating their strong interest and confidence in the token.
Source: Santiment
