DAI, the stablecoin created to represent the dollar in the digital world, has surpassed $10.000 billion in circulation on the market.
DAI's market capitalization has surpassed $10.000 billion for the first time, with a circulating supply of 10.080.493.300 units according to data from the website DAI Stats. Although DAI remains the second stablecoin decentralized by capitalization after Terra's UST, this stablecoin has become a crucial element for those looking to participate in the decentralized finance ecosystem (DeFi).
Source: DAI Stats
Stablecoins are a type of cryptocurrency pegged to the value of a fiat currency, a commodity, a commodity or another cryptocurrency. In this way, users can interact with various projects in the crypto world without worrying about volatility. Due to their qualities, stablecoins have become the favorite digital assets of millions of users and investors around the world.
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DAI, the first decentralized stablecoin
The development of DAI is in the hands of MakerDAODAI, one of the most important projects and protocols in the Ethereum decentralized ecosystem. This stable cryptocurrency was launched in 2017, after 3 years of research and development, when the decentralized finance ecosystem on Ethereum was beginning to come to life. Since then, DAI has gained great popularity and importance as one of the favorite digital assets to interact with in the crypto ecosystem, showing incredible growth within the DeFi world. With DAI, users can trade, exchange, or swap operations, access loans or liquidity, and even protect their value in market crashes.
Thanks to its minting system, DAI guarantees, with absolute transparency and reliability, parity with the US dollar.
Over the past month, the circulating supply of DAI has increased by 12%, denoting increased interest in this stablecoin from investors.
A stablecoin governed by smart contracts
The issuance of DAI is governed by smart contracts (smart contracts) and not by deposits in a bank account. This is the big difference between DAI and other stablecoins on the market such as USDT, issued by the company Tether Limited and USDC, issued by Circle. Although these last two are the two largest stablecoins in the industry by capitalization, it is also true that they have faced endless complications due to the lack of transparency of their issuing companies in the management of the reserves that back their value. This has been the case of USDT, mainly.
DAI overcomes the problems of centralization by integrating a structure governed by code. To issue 1 DAI, users must deposit collateral in cryptocurrency within the DAI vaults provided for this purpose. In this way, each time a new DAI stablecoin is issued, there is a digital asset as collateral that backs its value in a real way. This structure, combined with the transparency of the blockchain, guarantees a high level of stability in DAI reserves, as well as their 1:1 value against the dollar.
DAI Stats shows that the most used crypto assets for collateralize DAI is currently USD Coin (USDC), Wrapped Bitcoin (WBTC), Ethereum (ETH), and Pax Dollar (USDP), at 28%, 13,5%, 8,5%, and 2,8%, respectively.
Société Générale applies for loan at DAI
In September last year, French bank Société Générale, one of the largest banks in Europe, surprised everyone by requesting a decentralized loan in DAI. In total, the bank requested $20 million in DAI from the MakerDAO protocol, as part of its technological transformation and institutional adoption strategy. blockchain.
At press time, the daily trading volume for DAI exceeds $403 million, according to data from the CoinGecko monitoring platform. However, the adoption of this stablecoin could be boosted in the coming years, mainly by the regulations that may come to the crypto industry. Regulators in the United States, the United Kingdom and Japan have already threatened to tighten their current legislation to exercise greater control over stablecoins.
Continue reading: Terra's decentralized stablecoin UST surpasses DAI in market cap
