Fantom (FTM)-based decentralized finance (DeFi) stable coin DEI faced significant correction in its value more likely to UST.
Fantom is a smart contract-enabled crypto blockchain network. FTM is the native token of the Fantom network. Following a $40 million raise, Fantom launched its main net in December 2019. In recent years, the Fantom ecosystem grabbed huge success because of its ability to provide high Scalability based transactions.
DEI is a stablecoin, which operates on collateral mechanisms for third-party instruments. This stablecoin is built in the Defi Ecosystem of Fantom protocol DEUS Finance (DEUS).
On 16 May, DEI started to face correction in its pegged dollar value and touched $0.54, which means this coin faced a downfall by around 50% from its actual value.
At the time of writing this article, the trade of DEI is $0.61, which means the stablecoin value is down by around 39%.
When DEI started to face a downfall in its pegged value than at that time market value also started to face a downfall by around 50%. Some deep analysis noted that few big players exited from the DEI stablecoin support and that resulted in a big downfall.
Stablecoins & Trust
In the last 10 days, the crypto industry saw the downfall of Terra Ecosystem, where UST stable coin & Luna coin crashed rapidly and touched the ground level price.
Before the start of the downfall of the UST coin, it was standing at 3rd rank in the crypto industry in the list of stablecoins but now it has reached 80-90% downfall.
At the time of writing this article, the pegged value behind the UST coin is $0.12 and this price is 88% of its actual value.
Due to this situation of UST coin, the majority of the crypto traders are in fear with the use of stablecoins, which are based on algorithm-based concepts.