DAI Stablecoin Continues Market Expansion with Different Use Cases In Decentralized Finance
- DAI continues to expand in the crypto market
- Decentralized Finance will reach new individuals
The DAI stablecoin continues to improve its presence in the market and in the MakerDAO ecosystem. It is possible to issue new DAI to the market through Maker debt contracts and use the digital asset on the Ethereum (ETH) ecosystem for many other things.
DAI and MakerDAO Expand In The Market
2019 seems to be a good year for different virtual currencies and projects, including DAI and MakerDAO. According to some reports, MakerDAO has been growing at an estimated rate of 20 percent per month. At the same time, MakerDAO has also been using the stability fee on its network in order to help DAI remain stable and close to its USD peg.
As per the report, there are 14,400 different addresses that hold significant amounts of DAI. Moreover, 16,300 addresses were involved in sending and receiving the stablecoin. This is more than double the activity that was registered in January 2019.
Indeed, through the stability fee increase imposed by the community, it was possible to reduce DAI’s supply from 95 million to 83 million. This allows users to use DAI as a hedge against volatility in the crypto market and also to trade other digital assets.
There are several projects such as GetNup, Compound, dYdX, and Dharma that account for 13 percent of the total DAI transaction volume. June 2019 has also seen an all-time high in the amount of DAI that is currently held on decentralized applications.
Finally, there have been issued 325 million DAI od which 243 million has already been repaid. Meanwhile, there are 82 million DAI – the current supply – that is collateralized by $433 million worth of Ethereum. That means that each DAI in the market is backed by $5.3 in ETH, allowing DAI to have a stable price close to $1.
As there are many DeFi solutions expanding in the space, it's expected for MakerDAO and DAI to continue their growth path and reach a larger number of interested users. With the help of Coinbase and other platforms, it is expected for the digital currency to reach new users.