Valuation of the stablecoin DAI market rises – DAI market cap increased by more than 800% in 12 months – Defi

Recently, Bitcoin.com News looked at the stablecoin Tether and how the crypto asset's market valuation has increased by more than 500% in just over 500 days. In addition to this exponential increase, the market capitalization of the decentralized stablecoin DAI has also increased significantly, as the market valuation of DAI has increased by more than 800% in the last 12 months, rising from $696 million to $6.3 billion today.

Makerdao stablecoin surges 800% since September 2020

As of Saturday, September 18, 2021, there are approximately $127.29 billion worth of stablecoins and they currently hold $62 billion of today's trading volume. There is no doubt that stablecoins have become huge in the last three years, and news outlets and research studies often reference this Tethers (USDT) massive growth.

The thing with Tether ( USDT ) is that there are people in charge when it comes to the operation of the stablecoin project. The stablecoin DAI, on the other hand, is operated until Makerdao project This is a decentralized autonomous organization (DAO). Of course, there are people behind the minting of DAI stablecoins, but it is based on participants adding value to the service and over-collateralizing it.

The Makerdao website states that DAI contributes to financial freedom “without volatility” by offering a “price-stable currency that you control.” The website says that users Read the white paper to understand how it works and generate DAI on their own terms.

Over the past 12 months, the total DAI supply has increased significantly, increasing by 808.90% since September 18, 2020. Back then, the DAI market cap was only $696 million, but today it is over $6.3 billion.

Coingeckos Stablecoins by market capitalization Statistics show that DAI is now the fourth largest stablecoin by market capitalization. DAI trails Tether ($69.5 billion), USDC ($29.4 billion), and BUSD ($12.8 billion). BUSD’s circulating supply is just over half of DAI’s total supply.

Monthly statistics show that the market cap for decentralized stablecoins has increased by over 10%

As of Saturday, DAI recorded around $279 million in global 24-hour swaps so far and Records show that today more than 400 decentralized applications (dapps) and centralized exchanges use the DAI stablecoin. DAI is widely used in decentralized finance (defi) across liquidity pools, swaps, and crypto lending apps.

DAI and the Makerdao protocol are not without controversy and in April 2019 the stablecoin struggled to maintain its $1 peg. Dai tokens themselves are very dependent on excess collateral, and if the price of Ether suddenly crashes, DAI holders at that time could be left uncollateralized in a certain price range.

However, according to a Black Swan Incident On March 12, 2020, also known as “Black Thursday,” Makerdao developers had to come up with new ideas such as using other coins as collateral besides Ether to balance the risk. Unfortunately for users who wanted compensation for their under-collateralized investments, a ruling voice decided not to refund these users.

This decision ultimately led to one Class action lawsuit against the creators of the Makerdao project. Meanwhile, the Makerdao community has evolved and the DAI stablecoin continues to see issuance growth. Over the last 30 days, the DAI stablecoin has increased its valuation by 10.3%.

What do you think about the DAI stablecoin rising more than 800% in a year? Let us know what you think about this project in the comments below.

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