As Terra (LUNA) and its stablecoin, UST, stumbled its way down from grace, a lesser-known coin, which was previously met with animosity by Do Kwon, the founder of Terra, has been rallying with double digits.
Maker (MKR) is one of the few crypto projects that are in the greens as of now. Maker is the team behind the stablecoin DAI, which was a competitor of Terra’s (LUNA) UST stablecoin. Kwon, who is now publicly invisible, had previously said via Twitter that DAI would meet its end at his hands.
However, as fate would have it, it was LUNA’s UST that met its end, and most likely via measures taken by its own management.
At press time, Maker (MKR) was trading at $1,560.61, up by 49.4% on the daily charts, and up by 13.3% on the weekly charts.
However, the token is still 4.2% down on the 14-day charts, and 69.5% down on the yearly. Additionally, the token is 74.8% down from its all-time high of $6,292.31, which it attained on the 3rd of May 2021, just over a year ago.
Maker’s stablecoin, DAI, has also managed to keep its dollar peg, even though the project has witnessed a 2.5% drop in the last 24 hours. The same cannot be said for Terra’s (LUNA) UST which is currently trading at $0.151122, far from its dollar mark.
DAI has maintained its dollar peg even during moments of high volatility since every DAI in circulation is overcollateralized. DAI had progressively lost market share to Terra’s UST stablecoin over the last year. Rather than establishing its dollar worth through the collateralization of other assets, UST maintains its peg algorithmically, allowing market forces to determine its price.
According to Messari, DAI’s circulating market cap sits at $6.43 billion, a significant reduction from March’s near $10 billion.
DAI has also witnessed a sharp increase in active addresses, which is of no surprise, given its sudden spike.
Lastly, Vitalik Buterin, the founder of Ethereum, also showed his support for DAI when he said,
“DAI, RAI, and maybe USDC are the only stablecoins that we really need.”
Well, this should come as a lesson to us all. Terra’s (LUNA) Kwon has publicly said that he finds it “entertaining” to watch projects fail, not to mention his shots against DAI. It is now his project that is being shunned by the crypto community.