Total Circulating DAI reached $600M, a new all-time high

Dai minted by the Maker Protocol surpassed $600M in circulating supply on September 15th, a new all-time high for the currency.

By · Sep 17, 2020 . 5min read

Maker Dao all time high news
Source : IStock

DeFi’s native stablecoin the Dai minted by the Maker Protocol surpassed $600M in circulating supply on September 15th, a new all-time high for the currency.

The Maker DAI Bot tweeted,

Vault #14742 (ETH-A) was used to generate
DAI:
2,000,000 DAI minted
Liquidation price: $193.55
Vault debt: 2,000,000 DAI
Total DAI Supply: 601.542M DAI

Data from Dune Analytics confirms this as Dai in DSR and ERC20 Dai combined has crossed $600 million. It’s last all-time was in September when both Dai DSR and ERC20 Dai reached $504 million.

Total circulating Dai reached $600M, a new all-time high

Unlike other fiat-backed stablecoins like Tether, USD Coin, Dai is decentralized (not created or redeemed by any central, third-party gatekeeper or group of gatekeepers) and backed by a surplus of collateral especially ERC20 tokens. Its adoption continues to grow since its creation for use within Maker Protocol.

Dai as a stablecoin presently integrates into more than 400 Ethereum DeFi/Dapp protocols and even CeFi platforms like OKEx Pool and Wirex. It serves as a specific function with the Maker ecosystem where it is minted against debt positions.

Apparently, the stablecoin was in hot waters when the stock and crypto markets crashed in March during the height of COVID. The stablecoin failed to maintain its $1 peg as underlying crypto collateral tokens crashed horrifically leading to the liquidation of debt positions en masse.

With a total market cap of stablecoins at $19 billion, Dai is the third most capitalized after Tether and USDC. In the last 24 hours, Dai powered $108 million transaction volume with its current market at $589 million.

Dai’s all-time high circulating supply not much impact on MKR

Some are already asking why Dai’s newest all-time high isn’t reflecting so much on Maker governance token. Data from DeFi Pulse shows 2.8 million locked-in on Maker and $1.26 billion TVL.

Source: DeFi Pulse

Notably, it was the first DeFi lending protocols to cross the $1 billion TVL in July. Some think the failure for Dai’s growth reflection on MKR is because the protocol allows and makes it easier to mint by depositing USDC in vaults. They even claim this huge growth of the last 24 hours is artificial and therefore unsustainable.

As at the time of writing, MKR the governance token for MakerDAO is currently trading at $482. This is 70% down from its all-time high of $1,610 in January.

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