- According to the latest research by Marketpsycles.com, Maker’s DAI has consistently been getting huge community interest
- The YoY increase in DAI supply was about 14,049%
- DAI is yet another testament to Ethereum’s consistent innovation in the DeFi ecosystem
Maker, denoted by the token MKR, is the basis of a simple banking system built on blockchain technology that allows for an avenue where people can avail loans through overcollateralization. DAI is a stable coin mechanism built by MKR as an additional layer, which is pegged to the US Dollar. In theory, 1 DAI = $1.
According to a recent research initiative by the crypto blog marketpsycles.com, the adoption metrics of DAI have been in an exponential rise, almost mirroring that of its base layer blockchain, Ethereum. Built as a Stable Coin, DAI is an over-collateralized token built to function as an intermediary between the volatility of cryptocurrencies and insecurity of inflation of fiat. For each DAI in existence, there is at least 150% collateral held, making DAI incredibly resistant and stable. Contrary to industry belief, DAI is not inflationary and cannot be affected by sudden increase in fiat supply.
The Year-on-Year supply of DAI has increased by 14,048%, meaning that more people are locking their funds in the DAI ecosystem to hedge their bets. As Ashwath Balakrishnan, the author of the report, mentioned “…. this together helps set in the narrative that DAI is finding use cases outside of the tiny bubble it was once constrained to. Wider awareness in the market as well as controversy with Tether may have contributed to this ……… people are slowly opening their eyes to the pitfalls of permissioned stablecoins, and this may lead to a burst in DAI adoption.”
The report concluded with inferences that DAI, the product of Maker has been detaching itself from the parent blockchain and forming a reputation of its own. With increasing interest in Decentralized Finance (DeFi) and the stride lead by Ethereum, a lot of DAI’s success can be correlated to it.
To get a deeper understanding into the outcomes of the research, check it out here.