Market size of crypto-backed stablecoin up until June 21, 2022

The market cap of Dai was much higher in June 2022 than that of other crypto-collaterized stablecoins, such as Synthetix. For many people, stablecoins are associated with fiat currencies - especially the U.S. dollar - although they have other ways to maintain their stability. Crypto-backed stablecoins, for instance, try to maintain an excess supply of another cryptocurrency - often Ethereum (ETH). Dai, for example, requires at least 1.5 times its own value in collateral, meaning it needs a deposit of at least 1,500 U.S. dollars' worth in Ethereum whenever 1,000 Dai is borrowed in a Decentralized Finance (DeFi) smart contract. At first glance, this system feels somewhat similar to that of TerraUSD (UST) which also had a connection to a cryptocurrency, namely Terra (LUNA). This, however, is an example of an algorithmic stablecoin, which works in a different way than crypto-backed stablecoins.