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DAI (Dai) Token Price & Latest Live Chart
2023-06-30 12:24:00
1.0035 USDT

Discover the latest DAI price with FameEX's DAI/USD Price Index and Live Chart. Keep up-to-date with the current market value and 24-hour changes, as well as delve into Dai's price history. Start tracking DAI price today!

Daily historical price (USD)
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What is DAI (Dai)?

DAI is a cryptocurrency, recognized as a stablecoin, that originates from MakerDAO, a prime entity in the realm of decentralized finance (DeFi) and stablecoins. It stands distinct in the world of crypto as it incorporates elements of both the DeFi movement and the stablecoin realm. Created on the Ethereum blockchain, DAI is more accurately referred to as a stablecoin. Although its value occasionally experiences minor fluctuations, the objective of DAI is to preserve an equivalent value to one U.S. dollar, making it an ERC-20 token of significant interest. It seeks to offer the decentralization characteristics inherent in cryptocurrencies, while also maintaining the stability often associated with traditional fiat currencies.

DAI is not only a stablecoin but an over-collateralized, crypto-backed one, meaning that there's more cryptocurrency supporting it than the actual circulating amount of DAI itself. This diverges significantly from other stablecoins, which are usually backed by fiat currencies. DAI's methodology makes it more resilient to market volatility and avoid the possible depegging, such as the crash in the LUNA cryptocurrency following the depegging of the UST stablecoin in May 2022.

How does DAI (Dai) work?

The operations of DAI are underpinned by the Maker Protocol and Maker Vaults, which play a crucial role in DAI's generation and circulation. Users generate DAI by depositing collateral assets into Maker Vaults, allowing for an influx of liquidity. The newly minted DAI then finds its way into circulation, either through exchanges, brokers, or as a payment method. The reliance on collateralized assets for its generation sets it apart from fiat-backed stablecoins or controversial algorithmic stablecoins.

DAI also employs a unique method of price stability, aided by the use of smart contracts. These are automated digital contracts that execute specific actions once predetermined conditions are met. It uses these smart contracts to ensure that it remains pegged to the U.S. dollar. However, there have been occasional notable divergences, like the unexpected spike to an all-time high of $3.67 on 16 November 2021, and an all-time low of $0.9455 on 10 May 2020. Despite these, DAI has managed to quickly recalibrate and restore its equilibrium around $1.

DAI (Dai) market price & tokenomics

While it is intended to maintain a steady value around $1, DAI has a significant presence in the crypto market. More than 5.68 billion DAI were in circulation, providing the token with a market capitalization of $5.68 billion. This standing made it the fourth-largest stablecoin in terms of market cap. The entity behind DAI, MakerDAO, was initiated by Rune Christensen, a Danish crypto entrepreneur, in 2015. As of now, DAI (Dai) is ranked #16 by CoinMarketCap with market capitalization of $4,700,504,615 USD. The current circulating supply of DAI coins is 4,703,259,908.

Why do you invest in DAI (Dai)?

The unique aspect of DAI being a decentralized, over-collateralized stablecoin provides an appealing proposition for investors. Its ability to maintain its value pegged to the U.S. dollar allows it to serve as a hedge against the notorious volatility of the crypto market. Moreover, its transparent operation and democratic governance system instill confidence and trust, essential elements in the crypto world.

Is DAI (Dai) a good Investment?

Investing in DAI offers a level of stability uncommon to most cryptocurrencies, and it serves as a reliable store of value in an otherwise highly volatile crypto landscape. The transparency and democratic system of governance provided by the MakerDAO also lend to its credibility. However, like all investments, it's essential to conduct thorough research and consider personal risk tolerance before investing in DAI. Despite its design for stability, fluctuations have occurred, and no investment is entirely without risk.

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