DAI Depegs to Lifetime Lows as Stablecoin Rout Plagues Crypto
MakerDAO’s decentralized stablecoin hit an all-time low of 88 cents in Asian afternoon hours on Saturday.
As the market continues to digest the impact of the sudden collapse of tech-focused Silicon Valley Bank, days after Silvergate went into voluntary liquidation, algorithmic stablecoin DAI has been knocked off its peg and has hit an all-time low of 88 cents.
- DAI is currently trading at 90 cents, according to CoinGecko data.
- DAI is an algorithmic stablecoin that is collateralized by holdings from MakerDAO, which include USDC. Traders are speculating that Circle, which issues USDC, has worse exposure to Silicon Valley Bank than the $3.3 billion of the $40 billion backing USDC it disclosed.
- On-chain data from Dune shows that $563 million of DAI was burnt in the last 24 hours. In total, the stablecoin has a market cap of $4.9 billion.
- Curve 3pool’s liquidity pool has also been hit as traders flee USDC. As of Saturday afternoon Hong Kong Time, the pool’s share of USDT has shrunk to less than 1.5%. Earlier this week it was split evenly among USDT, USDC and DAI, as is supposed to occur.
- Meanwhile, Tron’s USDD has also been knocked off its peg and is down to 93 cents. Tether remains pegged at $1.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.