2 Years Old Cryto News Website

Total Supply of Decentralized Stablecoin DAI Exceeds $10 Billion

Currently, DAI is the fifth largest stablecoin by market capitalization. Tether (USDT) may still be the industry leader after all these years, but DAI has the advantage of being open-source and decentralized – something the DeF community strives for. DAI Rises According to Makerburn, the total supply of MakerDAO’s DAI, a decentralized stablecoin, jumped to a whopping $10 billion on Feb. 8. In addition, the supply of stablecoin collateral is about 62%. In recent years, DAI has found its niche as one of the most preferred stablecoins in decentralized transactions. Despite Tether having a lion’s share of the stablecoins in circulation and comfortably being the go-to stablecoin in dollar-based crypto transactions, MakerDAO’s native stablecoin has grown multiple-fold. DAI has witnessed increased transfer volume towards the end of 2021. However, a recent report from Coin Metrics noted that this trend has changed as the numbers took a beating soon after. In fact, much of the stablecoin’s overall offering has been moved to other side chains or layer 2 ecosystems using “bridges” between these networks. It is also important to note that DAI has found significant viability in several Ethereum-based decentralized finance (DeFi) protocols that use the decentralized token as a source of collateral or liquidity. Its use was strengthened as the volatility in the crypto markets increased. DAI is built on Ethereum and has stabilized on the value of USD. The stablecoin is pegged 1:1 to this currency through a system called the Maker (MKR) Dai Stablecoin System. Argentines embroiled in DAI Argentina’s perennial crisis of high inflation capital controls – coupled with political turmoil, made the US dollar the most desirable foreign currency. However, DAI had managed to capture the imagination of the country’s investors. As reported by CryptoPotato, Bitcoin remains the favorite of the Latin American country, but DAI is not far behind. Maker Foundation’s Mariano Di Pietrantonio had previously claimed that the stablecoin had attained the status of “a popular store of value” in Argentina. He stated: “Dai is not yet widely used for everyday purchases, such as groceries, as merchants generally do not accept it. But people store their savings in Dai and then convert their Dai back into their local currency when they need it. People trade in Dai in different ways: in person, via bank transfers, and so on.” SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and get $100 Free and 10% Off Fees on Binance Futures First Month (Terms and Conditions). PrimeXBT Special Offer: Use this link to register and enter POTATO50 code to get 25% off trading fees.
Source link
Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts