The DAI Stablecoin supply hits $1 billion for the first time in years and now decentralized Dai is the third biggest by market cap after Tether and USD Coin as we are reading further in our altcoin news today.
Maker users minted $2 billion worth of the DAI Stablecoin. The growing demand for the coin could likely be driven by the higher debt ceiling and the transition to the multi-collateral DAI so now the DAI Stablecoin is the third-largest stablecoin on the market after USDC and USDT. The users of the decentralized stablecoin Maker minted $1 billion worth of DAI according to Rune Christensen, the CEO and the co-founder of the company. Unlike other stablecoins, DAI is not minted by a central company that can decide to issue tokens at will so long as it is able to claim that it has sufficient reserves. Dai only requires investors to stake crypto in order to issue tokens which means that the growth is based on real demand. Maker noted:
“In just under one year since the launch of Multi-Collateral Dai, 1 billion [DAI] have been generated using Maker Vaults.”
The Multi-Collateral DAI allowed users to stake a variety of tokens for the first time since November 2019. Before this, in the Single-Collateral Dai era, it was only possible for the users to stake ETH tokens as collateral. This suggests that the government’s decision to support more tokens attracted even more users to stake their cryptocurrency with the protocol. DAI’s growth was mainly because of the fact that Maker voted to raise the debt ceiling to $1 billion. Before that, there was approximately $500 million in circulation. The coin’s $2 billion market cap makes it the third-biggest stablecoin on the market behind Tether with $17.6 billion and USDC with $2.8 billion supported by Circle and Coinbase.
The Maker Protocol just hit 1 billion Dai for the first time ever!
Want to be a part of growing it to 10 billion and beyond?
— Rune Christensen (@RuneKek) November 13, 2020
Speaking of Maker, MakerDAO’s fundamentals will boost the token higher after the market-wide correction as the past few weeks were tough for all leading decentralized finance coins. Ryan Watkins, the analyst from Messari reported that the blockchain is generating $27 million worth of annualized revenue for the MKR holders as it increased the interest rates on its decentralized loans, therefore, allowing the value to accrue in the token for the first time in months.
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