MakerDAO price rebounds as DAI holds its peg and investors search for stablecoin security

Data from TradingView and Cointelegraph Markets Pro reveals that the cost collapse of Terra (LUNA), sped up from May 9, to May 12, MKR climbed 66.2%, from a low at $952 on May 12, to its existing value $1,587.

MakerDAO (MKR), a decentralized stablecoin, managed to make the most of the crisis and collapse of TerraUSD.

The MKRs momentum reversal might be due to DAI holding its position during recent market turmoil, MakerDAO vault financing supply chain deliveries, and the addition staked Ether( ETH) as collateral to mint DAI.

The cryptocurrency market has actually had a difficult few weeks. The Bitcoin (BTC), rate is not near what analysts expect, several stablecoins have lost their pegs and the collapse of one of the largest decentralized finance (DeFi), platforms resulted in $900 billion disappearing from crypto market capitalization.

MKR/USDT 1-day chart. Source: TradingView

DAI holds steady during strong market turbulence

Because DAI kept its dollar peg in spite of an unpredictable market where a few stablecoins lost their pegs, financiers have more confidence in MakerDAO.

DAI remained constant in spite of a decline of more that 2.2 billion DAI. This may have helped financiers feel more positive, particularly after Tethers (USDT), price dropped to $0.974.

DAI need has actually fallen 25% over the last couple of days, but the Peg Stability modules have kept the peg strong. DAI holders can have peace of mind by putting DAI demand into the PSMs in the booming market. pic.twitter.com/XGEYndBP05
— hexonaut.eth @ Permissionless – May 12, 2022

The price of DAI fluctuated in between $0.9961 and $1.0046 throughout the peak of volatility. It is currently priced at $0.9994.

Real-world adoption continues

This deal showed one application of stablecoins and wise contracts in the supply chain market.

A MakerDAO vault was used in combination with Centrifuge, a decentralized property funding protocol. This permitted ConsolFreight to mint DAI to fund the transaction.

To track the transaction and keep a record, a nonfungible token (NFT), was likewise created. Provenance, Mastercards blockchain traceability option, is used to track the delivery.

MKRs growing approval in the real life is another element that has assisted it acquire momentum. The MakerDAO vault was just recently used to fund an Australian beef shipment. Extra “use cases” remain in the works.

A Maker Vault was utilized for funding a shipment from Brisbane to Hong Kong of Australian Beef. The entire operation is being traced utilizing @Mastercard Provenance, which is a blockchain-based traceability option. This is how it was possible
— Maker (@MakerDAO May 10, 2022

Staked Ether is collateral

MakerDAO claims the leading area after Curves TVL fell from $19.32 Billion on May 5th to $8.71 Billion on May 16th.

Individuals in the Ethereum BNB Chain stake can get access to funds that would otherwise be secured for an unknown time. They can then utilize them earning a DeFi yield.

MakerDAOs momentum is also being increased by the inclusion of security assistance for staked Ether on the protocol.

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DAI need has fallen 25% over the last few days, however the Peg Stability modules have actually kept the peg solid. DAI holders can have peace of mind by putting DAI demand into the PSMs in the bull market. The MakerDAO vault was just recently utilized to finance an Australian beef shipment. A Maker Vault was used for financing a shipment from Brisbane to Hong Kong of Australian Beef. The whole operation is being traced utilizing @Mastercard Provenance, which is a blockchain-based traceability solution.

Top-5 Protocols by Total Value Locked. Source: Defi Llama

According to data from Defi Llama, MakerDAO is now the highest-ranking DeFi protocol in regards to overall value locked (TVL) due to the fact that of the collapse of UST and its ripple effects.

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