RE: Was 64.26% the Top Bitcoin Dominance This Cycle or Not?

Oh, right. There's a big difference in terms of correlation.

This happened in the case of Terra Luna (with their coins Luna and USDT). The MC of Luna that should have backed USDT was a fraction of the latter, which eventually led to its collapse.

The risk is always evident when there's a noticeable gap between the MC of the backed asset and the main asset.

For HIVE, this scenario is not possible simply because if the MC of HBD becomes 30% of the MC of HIVE, all HBD print is halted, including for interest, author rewards, DHF, etc. until the debt ratio goes below 30% again. It is very likely that way before that, witnesses would lower interest rate on HBD in savings. There are other protection mechanisms in place, like the 3.5-day median price on conversions, to avoid major speculative movements in the short term that would mess with this debt ratio.

As a way to prevent this noticeable gap is probably one of the reason why MC of HBD has this 30% cap limit. Interesting mechanism this HBD is built on, it seems. Makes me think Hive blockchain is a bit of a complex or sophisticated ecosystem, in a good way!

Thanks again for the wonderful explanation, I really appreciate the insights :)