Market Speculation Discussion–All opinions are my opinions
With the recent excitement behind the Return of DAI to the Peg, I have started thinking of many reasons as to why this has happened. My first impression–it’s from the news that the community wants to implement the PSM. My other thoughts–perhaps the measures the community has taken via Governance decisions, discussions, and other actions. Or perhaps short-sellers are out and moved-on to other trades, or/and arbitrageurs.
The current Maker blog https://bit.ly/3kV6fm9 titled “Governance Poll: Accelerate the Peg Stability Module Launch” states that: “The PSM will be initially rolled out for at least USDC and (time permitting) to the other stablecoins as well. Debt ceilings will be made high enough to allow as much supply as needed to return the peg to 1.001 USDC.”
As I type out this opinion, DAI is 1.0012 to USDC on Coinbase Pro. But I’ve been thinking–is the return to the Peg community driven, Fund/Arb driven, etc., or just a return of CONFIDENCE in DAI, or perhaps POPULARITY?
Now before you shush me away I can tell you that while roaming/lurking around Degen Telegram channels and Discord–I’ve seen messages like, “I’m going to ape-in with 1,000 DAI”. Or, “Maker is adding ________ as collateral”, and “I’m an LP with DAI/%&#”. What I am saying is, the talk of the DeFi community is starting to turn a little positive with regards to Maker and DAI (if I am right, I hope I don’t jinx it ).
Okay–we All don’t want to probably talk about it but in my opinion after the Black Thursday events Maker lost some supporters. And it felt like back then on TG, Discord, Crypto Twitter, most wanted to see the protocol fail. Now I’m seeing a resurgence of ETH heads wanting to use DAI, maybe not as much as USDC (would be cool if someone had a study on this) but we are starting to get there. Not quite–but once we get there–that’s when we know it’s on!
What are your Thoughts? Do you believe the Peg is returning because_______________.