Bitcoin Magazine recently reported on the market capitalization of Stablecoin Tether (USDT), which rose more than 1,500% in just 532 days. In addition to this exponential increase, the market capitalization of the decentralized stablecoin DAI has also increased significantly by more than 800% from $ 696 million to $ 6.3 billion in the past 12 months.
As of September 19, the total market cap of stablecoins is nearly $ 127 billion and their trading volume is up to $ 62 billion. Undoubtedly, stablecoins have become increasingly important and have seen incredible growth over the past three years. Media and researchers alike frequently mention the growth of the USDT.
There are many people who are skeptical about how Tether works and how USDT is printed. Meanwhile, the stablecoin DAI is operated by Makerdao, a decentralized autonomous organization (DAO). Of course, people are behind the DAI imprint, but it is based on the fact that the participants add value and additional security to the service.
According to Makerdao, DAI helps with “volatility-free” financial freedom by providing “a price-stable currency that you control”.
Total capitalization of the DAI | Source: Coinecko
In the last 12 months, the total supply of DAI has increased significantly and has increased by 808.90% since September 18, 2020. Back then, DAI market cap was just $ 696 million; today it’s over $ 6.3 billion.
According to statistics from Coingecko, DAI is currently the fourth largest stablecoin by market capitalization. It is behind Tether ($ 69.5 billion), USDC ($ 29.4 billion), and BUSD ($ 12.8 billion). The circulating supply of BUSD accounts for more than half of the total supply of DAI.
Monthly statistics show that the market capitalization of the decentralized stablecoin has increased by more than 10%
DAI has posted roughly $ 279 million in swaps in the past 24 hours, and data shows that over 400 dApps and centralized exchanges have benefited. DAI is used heavily in the DeFi sector for liquidity pools, swaps, and loan applications.
DAI and Makerdao are not without problems. In April 2019, it was difficult to keep the $ 1 connection. The DAI tokens themselves rely heavily on excess collateral, and if the price of Ether suddenly falls it might be impossible for DAI holders to stay within a certain price range.
After the Black Swan incident on March 12, 2020, also known as “Black Thursday”, the Makerdao developers were looking for new ideas, such as using other coins in the world in addition to Ether to offset the risk. Unfortunately, after a governance vote, there are no refunds for those users who want to be compensated for their mortgage investments.
That decision led to a class action lawsuit against the makers of the Makerdao project. Meanwhile, the Makerdao community continues to grow and DAI is steadily increasing its emissions. In the last 30 days, the value of the DAI has risen by 10.3%.
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According to News.Bitcoin