CDAI Price Chart
What is DAI?
Almost every crypto investor is familiar with Stablecoins, such as USDT or USDC, which are tied to fiat currency and have low volatility. They are mostly used as savings.
However, there is one Stablecoin that is much cooler than all the ones you know! It has many uses and has an incredible background in the crypto market. On this page you will find the actual DAI coin price chart. Also on our site you will find up-to-date information about OKT Chain cryptocurrency and many other assets.
What is DAI?
DAI cryptocurrency is an Ethereum-based coin whose issuance and development is managed by the Maker protocol and the DEX autonomous organization MakerDAO.
The DAI token price is soft-linked to fiat (US dollars) and is backed by a combination of other crypto that are deposited into smart-currency stores each time a new coin is minted.
It is important to distinguish between a DAI with multiple collateral and a DAI with one collateral (SAI), an earlier version of a token that could only be backed by one cryptocurrency. SAI also does not support an accumulation rate, which allows users to earn savings for storage.
It is a long-time player in the cryptocurrency market, its first version with a single SAI collateral was launched back in 2017, an updated one with multi-collateral came out later, in 2019.
How does DAI work?
It is the fourth largest DEX Stablecoin by market capitalization. But while USDT and USDC are backed by traditional assets like cash, corporate bonds, U.S. Treasuries and commercial paper, DAI, is backed by crypto.
There is no upper limit to the total supply – the supply is dynamic and depends on how much collateral is held in the vaults at any given time. As of May 2023, about 5.8 billion were in circulation.
Why is this asset so good?
MakerDAO and their DeFi projects are known for their reliability and very advanced ecosystem. Thanks to them, Stablecoin is integrated into more than 400 different DApps and has useful utilities that allow users to generate income from holding the coin.
Also, the software development process is regulated in a more democratic way – through direct voting by the permanent members of the token ecosystem.
And also do not forget about the fact that $DAI, as well as the entire market experienced serious problems caused by the collapse of Terra and their algorithmic stack UST. At that time, the community’s trust in coin was severely shaken.
However, it could get out of this situation because of its operating principles. Unlike UST, an insufficiently secured cryptocurrency, DAI initially exists only when the coin is over-secured. By doing so, it clearly proved to the market how important it is to over-secure Stablecoin.
Which proves its reliability for more than 5 years. And at the same time, it is not obsolete, but on the contrary, it is a quality alternative to traditionally secured.
Regulation by SEC
The financial regulator SEC (Securities and Exchange Commission) has not yet made specific decisions regarding regulation.
However, like other crypto, DAI may be subject to certain legal requirements and regulation by the SEC, depending on the circumstances. The SEC states that all crypto and tokens that are recognized as securities must follow federal securities laws, including registration and additional discussion documentation.
Some experts believe it could be considered a security, and therefore could fall under SEC regulation. But there is no concrete decision yet, and that will depend on how the SEC decides to treat and regulate crypto in the future.
MakerDAO is working to ensure transparency and compliance with all financial regulatory requirements. This can help reduce the risks of regulatory intervention and create a more favorable environment for developing DAI and other DEX Stablecoins.
MakerDAO and DAI price outlook now
DAI price prediction is quite optimistic for several reasons:
- Growing interest: with the growing popularity of crypto and DEX financial applications (DeFi). Stablecoins are becoming increasingly popular among users and investors. This guarantees the stability of DAI crypto prices in the future.
- Improving Technology: MakerDAO is constantly improving its technology and improving the protocol to make it more efficient and sustainable.
- Built on the Ethereum blockchain, which is one of the most popular and stable blockchains on the market.
- The growth of the DeFi ecosystem: DeFi applications such as Compound, Uniswap, and others can use coins as a means of payment, collateral, etc. The growth of the DeFi ecosystem could lead to more demand.
- Increasing user numbers: Coin could attract more users and investors who want to use crypto but don’t want to risk price volatility.
- Partnerships and integrations: MakerDAO has partnered with other blockchain projects such as Compound, Uniswap, and others to improve its ecosystem and create more use cases.
These factors can help market MakerDAO and lead to an increase in the DAI current price. However, as with any cryptocurrency, market conditions and other factors can also affect DAI price charts.