Total DAI Stablecoin Supply Surpassed $10 Billion: Analysis

The total DAI Stablecoin supply has surpassed $10 billion while being the fifth-biggest stablecoin by market cap and Tether still being the market leader after all these years. DAI however has the advantage of being open-source and decentralized so let’s read furhter in today’s latest altcoin news.

Right now, DAI is the fifth biggest stablecoin by market cap. Despite Tether being the market leader, DAI has the perks of being open-source and it is decentralized which is sometimes wanted in the DEFI community. According to MakerBurn, the total supply of MakerDAO’s DAI shot up to $10 billion, and also its supply from a stablecoin collateral stands at 62%. over the past few years, DAI found its niche as a preferred stablecoin in decentralized trades. Despite Tether controlling a huge chunk of the stablecoins in circulation and being the main stable coin in the dollar-based crypto trades, MakerDAO’s native stable coin grew immensely.

DAI witnessed a huge transfer volume towards the end of 2021 but a report from Coin Metrics shows that this trend changed as figures took a beating soon after. Much of the total supply of the stablecoin was moved to other sidechains or layer-2 ecosystems with the help of Bridges between the networks. It is also important to note that DAI found strong viability in an ETH-based decentralized finance protocol that uses the DEFI tokens as collateral or as liquidity. The use case bolstered as volatility picked up on the market. DAI is also pegged to a currency thorugh a system called the Maker DAI system.

Argentina’s crisis from high inflation capital controls and the political turmoil paved the US dollar to still be the most wanted currency but DAI is changing the imagination of investors in the country. Bitcoin is still the favorite of the Latin American country but DAI is not so far off. Maker’s Mariano di Pietronio claimed that the stablecoin reached the status of the popular store of value and stated:

“Dai isn’t yet used much for day-to-day purchases, such as groceries, because merchants typically don’t accept it. But people are storing their savings in Dai and then converting their Dai back to their local currency as they need it. People are trading Dai in different ways––in person, using bank transfers, and so on.”