MakerDAO can be satisfied. Its stablecoin, the dai (DAI), now has a total capitalization of one billion dollars. “One billion dai in circulation is an important milestone,” says DeFi’s reference player.
Two stable corners in dollars are certainly the law. They are the Tether (USDT) and the USDC of Circle. The market capitalization of the first reached 17 billion dollars this week. It was just under 4 billion in January 2020.
But the USDC is not to be outdone, as is the dai of MakerDAO. The Stablecoin has also reached a new high of 1 billion dollars. With a value of 1 dollar per token (or even slightly more), the stablecoin now has 1 billion tokens.
The DAI, a pillar of the DeFi
“One billion dai in circulation is a huge milestone and a powerful validation that people around the world want more access, more transparency and more opportunity to maximize their economic potential,” says MakerDAO’s boss at CoinDesk.
This step is undoubtedly explained by the growing interest in DeFi over the last few days. The total value of funds (TVL) committed to decentralized finance platforms is indeed 13.7 billion dollars.
However, as our American colleagues explain, the DAI is created “when Ethereum users deposit one of the many assets in the Maker protocol and borrow against this asset in the form of a DAI”.
According to DeFi Pulse, Maker now claims a total value of $2.38 billion. This makes it DeFi’s second protocol after Uniswap in terms of LPT. And since the beginning of November, this indicator has grown by more than 300 million dollars.
The Tezos blockchain wants to dethrone Ethereum
“The Dai is a pioneer of protocol-based financial instruments – and reaching the billion dai mark proves that it works, and is here to stay,” comments the founder of another major DeFi protocol, Compound.
A sign that 2020 is the year of the explosion of DeFi and its tokens, the value of this market exceeded one billion dollars in February. Now, the DAI alone weighs such an amount. And crypto-money, with the DeFi’s collateral system, is now an essential instrument.
Other players also covet such a place in decentralized finance. This is notably the case of Tezos, as well as other blockbusters who want to take away Ethereum’s first place. Through the Delphi update, Tezos Blockchain announces a reduction in gas consumption of around 75%.
Clearly, transaction costs are dropping, which could attract DeFi protocols often faced with Ethereum’s saturation and problematic costs. The CEO of the FTX exchange recently drove the nail in.
For Sam Bankman-Fried, Ethereum is simply not up to DeFi’s challenge. The network is thus proving unable to support the growth of decentralized finance, says the creator of the Serum project.
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