The Steem Backed Dollar is back on track again

The idea with having an asset that is market pegged is to make it easier for businesses.
When you buy something in a store they should know that when they sell something for 1 SBD they are also going to that when they exchange it when it's time to restock. A MPA is supposed to be less volatile than other cryptocurrencies.

The issue with a high price on a MPA

When the price is high it will be a difficult position to use it as a currency for selling and buying goods.

A store owner that sells shirts for example;
The seller stocks with shirts, and pays 15 USD per shirt, and puts them on the market for 20 USD or 20 SBD. If the SBD is suddenly worth 2 USD the customer don't want to buy the shirt that now equals 40 USD. The seller can then lower the SBD price to 10, and the customer will be happy. If the SBD then goes down again, like it has now, the owner only gets 10 USD and comes out with a loss.

Since the beginning of May the SBD hasn't been priced much more than 1 USD per 1 SBD, and was at some points even priced at 2 USD, which is not ideal. This makes it difficult to price store items.

The high price has given many users a very good premium on their SBD holdings when selling on the open market.