MakerDAO, one of the most popular DeFi startups in the market, continues to expand its presence in the market. The DAI stablecoin is being adopted by many individuals and it can be done through Maker debt contracts.
DAI Use Cases Help Ethereum’s DeFi Ecosystem
Decentralized finance is one of the sectors of the crypto market that has large growth potential for the future. 2019 seems to be a good year for digital assets and specifically Ethereum (ETH) that was able to end its bear market that started in 2018. MakerDAO was able to grow 20 percent each month.
Maker has also consistently tweaked his stability fee in order for DAI to remain a stable virtual currency. DAI is a stablecoin pegged to the US dollar and that it is used to take loans with crypto as collateral.
At the moment, there are 14,400 addresses that hold a significant amount of DAI, while there are 16,300 addresses that were involved in sending and receiving the digital currency. Due to the fact that the digital currency couldn’t sustain its peg with the US dollar, the community voted to increase the stability fee, reducing the supply of the digital currency from 95 million DAI to 83 million.
Thus, it is possible to use this stablecoin as a hedge against crypto and also for many other projects on the Ethereum blockchain. GetNuo, Compound, dYdX and Dharma are currently owning 13 percent of the total DAI transaction volume. In addition to it, 325 million DAI has also been issued through the Maker loan protocol and $243 million has already been repaid. Meanwhile, the outstanding $82 million DAI that is in the current circulating supply is collateralized by $433 million worth of Ethereum. This is very important because there are $5.3 per DAI issued in the market.
There are several stablecoins in the market, including Tether (USDT), Gemini USD (GUSD), USD Coin (USDC), True USD (TUSD) or Paxos Standard (PAX). However, none of them offers the solutions and utility that DAI is currently offering on the MakerDAO and Ethereum ecosystems.
Users can now have access to DAI through Coinbase. They are now able to use a more reliable stablecoin and be part of the growing market for DAI and MakerDAO.
Currently, DAI is the 84th largest digital currency in the market, as reported by CoinMarketCap.
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