The DAI coursea great decentralized stablecoin issued by MakerDaohas fallen under 1 dollar in the wake of the setbacks of theUSD Corner from Circle.
Around 4am, the decentralized stablecoin DAI began to lose parity with the greenback and eventually fell below 0.90 dollars later in the morning. The price of the token has since rebounded and is currently trading around 0.94 dollaraccording to data provided by CMC.
The depeg of the DAI intervenes while theUSD Cointhe second largest stablecoin on the market, is also experiencing difficulties. Following the failure of Silicon Valley Bank, a bank holding part of the cash reserves of its issuer Circle, theUSDC has indeed also lost parity with the US dollar overnight.
In contrast to the USDC backed by fiat money and U.S. Treasuries, the DAI is a stablecoin called decentralized. The token is guaranteed by the assets of MakerDAO including in particular… the USDC.
The entity diversified its reserves with a $500 million investment in traditional assets this fall to reduce its risk. This was apparently not enough to deal with the current market conditions and the problem faced by the USDC.
Other stablecoins with smaller market capitalizations have also lost their footing in recent hours. These include theUSDP and Justin Sun’s USDD.
Meanwhile, the market’s No. 1 stablecoin, USDT, rose above $1 as many traders pivoted from USDC to the token of Tether.
Follow Corners.en on Twitter, Linkedin, Facebook or Telegram to not miss anything. Subscribe to our crypto newsletter to receive a news summary every week.