Home
News
- Stablecoins are valued at about $127.29 billion on Saturday, September 18, 2021, and they now command $62 billion in today’s transaction volume
- DAI, according to the Makerdao website, enables financial freedom without volatility by providing a price-stable currency that you control
- DAI witnessed over $279 million in 24-hour worldwide swaps on Saturday, according to statistics, and the DAI stablecoin is currently used by over 400 decentralized applications (dapps) and controlled exchanges
Stablecoins are valued at about $127.29 billion on Saturday, September 18, 2021, and they now command $62 billion in today’s transaction volume. There’s no denying that stablecoins have exploded in popularity over the last three years, with news sources and academic studies frequently referencing tether’s (USDT) meteoric rise. When it comes to the stablecoin project’s operations, the issue with tether (USDT) is that people are in charge. The Makerdao project, on the other hand, is a decentralized autonomous organization that runs the stablecoin DAI (DAO). Of sure, there are individuals behind the minting of DAI stablecoins, but it is dependent on participants contributing value to the service and over-collateralization.
DAI, according to the Makerdao website, enables financial freedom without volatility by providing a price-stable currency that you control. Users may read the whitepaper to learn how it works and produces DAI on their own terms, according to the website. The entire DAI supply has risen dramatically during the previous 12 months, increasing by 808.90% since September 18, 2020. The DAI market cap was only $696 million at the time, but it is now over $6.3 billion. DAI is now the fourth largest stablecoin by market capitalization, according to Coingecko’s stablecoins by market capitalization statistics. Tether ($69.5 billion), USDC ($29.4 billion), and BUSD ($12.8 billion) are all ahead of DAI. The circulating quantity of BUSD is little more than half that of DAI.
DAI witnessed over $279 million in 24-hour worldwide swaps on Saturday, according to statistics, and the DAI stablecoin is currently used by over 400 decentralized applications (dapps) and controlled exchanges. In decentralized finance (defi), DAI is widely used in liquidity pools, swaps, and cryptographic lending apps. The Makerdao system and DAI are not without controversy, and the stablecoin failed to maintain its $1 peg in April 2019. Dai tokens are very reliant on extra collateral, and if the price of ether dropped dramatically, DAI holders would be left uncollateralized in a specific price range.
However, after a black swan event on March 12, 2020, also known as ‘Black Thursday,’ Makerdao developers had to come up with new ways to mitigate risk, such as using other currencies as collateral instead of ether. Unfortunately, a controlling decision opted not to pay consumers who requested reimbursement for their undercollateralized investments. This judgment resulted in a class-action lawsuit being filed against the Makerdao project’s developers. Meanwhile, the Makerdao community has moved on, and the issuance of the DAI stablecoin has increased. The DAI stablecoin’s value has grown by 10.3 percent in the previous 30 days.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
