One of the growing stablecoins is DAI. What do you need to know about DAI cryptocurrency? How are the tasks of the project solved?
Today we’ll take a look at the DAI coin price chart, analyze its plans and try to predict the coin’s future.
Why do experts wait for the DAI token price to fall?
The DAI stablecoin is backed by 40% of centralized assets:
Some experts believe that this structure and DAI crypto price itself come with risks of centralization.
“How long does it take to liquidate that 40% by court order if there is a good reason (terrorism funding/climate change research or any other reason that Uncle Sam doesn’t like)?” – asks HOPR founder Sebastian Bürgel.
MakerDAO is a protocol that allows users to generate DAI, a synthetic stablecoin originally backed only by Ethereum (ETH).
In November 2019, MakerDAO introduced a multi-collateral version of DAI. This move opened up the possibility of using various crypto assets to back the stablecoin.
DAI current price
DAI is the fourth stablecoin after Tether, USD Coin, and Binance USD in terms of its share in its segment. Its capitalization is approaching $6,7 billion.
The total capitalization of the stablecoin segment currently exceeds $120 billion.
As of today, the DAI live price chart shows us the figure of 0.998 per coin.
The DAI crypto price ATH was recorded on February 3, 2018. Then the quotes for the coin reached $1.37. The lowest DAI token price was set on January 11, 2018, and it was equal to $0.720637
DAI prediction for the nearest future
What plays the most significant role in the DAI price now is stablecoin’s reliability. For example, stablecoins True USD and Tether are backed by assets in bank accounts. This raises concerns among users about whether the coins are indeed backed by fiat.
In the case of DAI, the token is issued and exists only on the ETH blockchain, hence it is open and decentralized. Compared to its competitors, the DAI coin price chart gives users the confidence that it is attached to real assets and they are available for exchange. This is done through the principle of collateral with ETH.
On the other hand, this feature is the only thing that can damage the DAI price now. Since the stablecoin entirely exists on Ethereum, it absorbs all the risks associated with the security, performance, and reliability of this blockchain. Therefore the DAI current price depends on the cost of ETH.
Why opt for DAI?
The main advantage of DAI is decentralization. At the moment, DAI remains the only well-known stablecoin backed by cryptocurrency, which is managed using smart contracts.
Indeed, the DAI live price chart shows quite a great performance amid other depegged stablecoins (UST, USDD).