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DAI

DAI (DAI) Price Index

$ 0.999852 Ƀ 0.00001941
  • MarketCap
    $ 4,952,516,299
  • Volume
    $ 110,852,565
  • Change
    -0.13%
daiDai
$ 0.999852
$ 0.999852
0.13%
0,922666
DAI
Dai (DAI)
$ 0.999852
DAI
Dai (DAI)
author
author
With a background in journalism and digital marketing, Marcel is a keen crypto enthusiast and investor. A regular contributor to several crypto publications, he believes that META-based projects will soar in the coming years and is super-bullish on MeritCircle and the increase in P2E gaming platforms. Marcel is also excited about AVAX and FTM as ETH-chain alternatives, and any projects with strong utility, transparency, experience, and community marketing.
By Marcel Deer
author
With a background in journalism and digital marketing, Marcel is a keen crypto enthusiast and investor. A regular contributor to several crypto publications, he believes that META-based projects will soar in the coming years and is super-bullish on MeritCircle and the increase in P2E gaming platforms. Marcel is also excited about AVAX and FTM as ETH-chain alternatives, and any projects with strong utility, transparency, experience, and community marketing.
on January 02, 2023 | 3 min
Updated on Dec 14, 2023

Overview: What Is DAI Coin?

DAI (DAI) Coin is an early stablecoin that was issued by MakerDAO on the Ethereum blockchain. MakerDAO was founded by Rune Christensen in 2015, and the Maker protocol was launched in December 2017.

 

DAI is what’s termed an algorithmic stablecoin as it uses its technology and locks other crypto assets into smart contracts, rather than fiat reserves, to maintain a ratio and value 1:1 with the US dollar.

 

What Makes DAI Coin Unique?

Unlike other stablecoins such as Binance Coin (BUSD), US Dollar Coin (USDC), and Tether (USDT), DAI is not pegged to the US dollar through its creators keeping equivalent fiat reserves.

 

DAI is seen as a very decentralized cryptocurrency, which means its users have more control over its blockchain network. Users of DAI submit Ethereum-based assets via smart contracts, which are used as collateral for the coin’s peg to the US dollar. Using this mechanism, DAI  is collateralized by other cryptocurrencies, including Ethereum (ETH) and USD Coin (USDC), as well as others. This makes DAI a multi-collateral system. DAI is also different because DAI token holders can earn interest.

DAI price history

As DAI (DAI) is a stablecoin and is designed to be pegged to the US dollar, it should maintain a value of 1:1 with the US dollar. However, looking at a DAI price history, you will find slight variations upwards or downwards from $1. Other stablecoins also see these slight deviations in value.

What is DAI Coin Used For?

DAI (DAI), like other stablecoins, can be used to store cryptocurrency value without it being affected by the volatility of other coins. It can also be used in decentralized finance (DeFi) projects and in blockchain games and DApps.

How does Dai Coin work?

Unlike other stablecoins, which are pegged to fiat currencies like the US dollar, DAI (DAI) uses stabilization mechanisms powered by the Maker platform and MKR token. These mechanisms keep DAI crypto value at $1.

 

DAI is Ethereum blockchain-based and enabled by smart contract technology. As its price is controlled by mechanisms that work in a similar way to margin trading, it’s classed as one of the more decentralized blockchain protocols.

 

Maker is a decentralized autonomous organization (DAO), and it enables DAO cryptocurrency price stabilization, running its own MKR token as well as DAI. MKR token holders vote on decisions for Maker and for DAI (DAI). DAI crypto explained fully, can be much more complex, but we’ve touched on the important differentials.

DAI (DAI) price prediction for 2025

DAI price prediction is an easy task. DAI (DAI) is a stablecoin with a blockchain-enabled system that keeps its value pegged 1:1 with the US dollar. DAI price prediction for 2025 is $1, and a DAI price prediction for 2030 is exactly the same.

Where Can You Buy DAI?

DAI (DAI) is a popular stablecoin that’s been around for a number of years. It’s trusted by many cryptocurrency users, so DAI is available on most major cryptocurrency exchanges.

 

FAQs

What is the disadvantage of DAI?

To have DAI crypto explained in detail and understood takes some time, as the architecture behind the protocol and its governance mechanisms are complex. Some believe that DAI (DAI) is over-collateralized, so it takes a greater deposit of, say, Ethereum (ETH) to get a lower value of DAI back. DAI is sometimes seen as less decentralized because its governing protocol, MakerDAO, is not decentralized.

 

Is DAI coin a good investment?

DAI (DAI) coin is not going to accumulate value for investors, as it’s a stablecoin that exactly follows the value of one US dollar. Instead, DAI is a better choice for money transfers and for using inside DApps and blockchain games.

 

Why is DAI so stable?

As a stablecoin, DAI is pegged to the US dollar to maintain its value. However, DAI (DAI) differs from other stablecoins because it uses technology and a collateralized system to maintain the DAI crypto value. Most stablecoins are backed by reserves of fiat assets or fiat currencies.

 

What network is DAI on?

DAI (DAI) is, in essence, an Ethereum ERC-20 token on the Ethereum blockchain.

 

How is DAI different from other stablecoins?

Most stablecoins are backed by reserves of fiat currency like the US dollar or other fiat assets and are not volatile cryptocurrencies. DAI (DAI) is an algorithmic stablecoin that uses other cryptocurrencies and technology to maintain its $1 value.

 

 

author
About Marcel Deer
With a background in journalism and digital marketing, Marcel is a keen crypto enthusiast and investor. A regular contributor to several crypto publications, he believes that META-based projects will soar in the coming years and is super-bullish on MeritCircle and the increase in P2E gaming platforms. Marcel is also excited about AVAX and FTM as ETH-chain alternatives, and any projects with strong utility, transparency, experience, and community marketing.
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