DAI's Stablecoin Market Cap Threatens Dogecoin's Position

Crypto Dogecoin DOGE. (Unsplash)

JAKARTA – Dogecoin (DOGE) which now ranks as the number 10 crypto based on its market capitalization, is threatened by the DAI stablecoin marketcap which continues to increase.

DOGE is still able to maintain its position as the 10th largest cryptocurrency with a market value of 8.16 billion US dollars. While DAI ranks 11th with a market capitalization of 6.92 billion US dollars.

For information, the largest decentralized stablecoin is Dai. The stablecoin was launched in 2017. DAI is backed by MakerDAO, a decentralized autonomous organization that trades user deposits of wrapped Bitcoin (wBTC), Ethereum (ETH) and nearly 30 other cryptocurrencies for DAI stable coins.

After the collapse of Terra (LUNA) and TerraUSD (UST) last May, followed by Celsius, which recently had problems, DAI has its own charm in the midst of the decline in the crypto market.

In early July this crypto lending platform Celsius has paid its debt to the Maker protocol (MKR). This shows Celsius's efforts to avoid total collapse of the company amid rumors of bankruptcy.

According to data from decentralized financial explorer DeFi Explorer, showing that since July 1, Celsius has repaid its debt of US$142.8 million in DAI through four separate transactions. Even so, Celsius still owes Maker $82 million.

On the other hand, Dogecoin meme coin is still strong in the top 10 of CoinMarketCap's crypto ranking. DOGE which has great support from a number of big figures such as Elon Musk, Snoop Dogg, Mark Cuban, and others has become a cryptocurrency that is supported by the global community.

Recently, DOGE was used as a means of payment in the United States, to be precise at one of Elon Musk's companies, The Boring Company. The company has a Loop underground road transit system to avoid congestion on the main roads.

Loop, which is located in Las Vegas, is the main alternative for drivers who want to avoid heavy urban traffic.