DAI: MakerDAO’s stablecoin exceeds 100 million
Stable Coin

DAI: MakerDAO’s stablecoin exceeds 100 million

By Marco Cavicchioli - 11 Nov 2019

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DAI, MakerDAO’s stablecoin anchored to the value of the US dollar exceeded one hundred million tokens issued

As a result, its market capitalisation is now just over 100,000,000 USD, considering that the circulating supply is 100,398,811 DAI. 

In reality, it is still far from other dollar-anchored stablecoins in terms of market capitalisation, such as Tether, which capitalises more than 4 billion, or USDC, which capitalises 400 million, but it is approaching TrueUSD, for example, which capitalises only 173 million, and exceeds Gemini Dollar (GUSD) abundantly, which stops at 4.5. 

Volumes are still limited, with just over 4 million dollars traded in the last 24 hours, against 26 billion of Tether, 244 million of USDC, and 173 billion of TrueUSD, but close to the 4.3 million of GUSD. 

The record was reached after a few weeks of activity in terms of new issuance. Until the beginning of September, in fact, market capitalisation was more or less stable at just over 75 million, but from mid-September, it began to rise, with a real slight boom from the beginning of November. 

Currently, 2.2 million ETH have been frozen through MakerDAO for the generation of DAI tokens, with almost 2,000 transactions on the smart contract in the last 24 hours, by more than 1,200 users. 

A consequence of this success was also the increase in the price of the MKR token, which rose from less than $500 to about $660 in about a couple of weeks. 

In addition, ETH could also have benefited in some way, given that in the last 30 days, for example, the price has remained fairly stable at around $185

But the reason for this growth is most likely due to decentralised finance (DeFi), with the total value rising from less than $500 million to almost $650 million in two months. 

But there are still obstacles, especially regulatory ones, to the widespread spread of decentralised finance.

In particular, DAI loans, for example through Compound, have not yet been integrated into a clear regulatory framework, which could limit their spread. 

 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 11 thousand subscribers.

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