Evaluating why DAI is almost winning the Stablecoin replacement battle

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  • Large address­es have been look­ing to DAI as an alter­na­tive to oth­er stablecoins.
  • Although the sup­ply increased, the coin still faces rivalry. 

Since the broad­er cryp­to mar­ket expe­ri­enced draw­backs in the last few weeks, many investors have been tak­ing posi­tions by accu­mu­lat­ing stablecoins. 

For some, the price cor­rec­tion presents a chance for poten­tial gains in the future. For oth­ers, it was not yet the sea­son to spot an opportunity.


How much are 1,10,100 DAIs worth today?


Usu­al­ly, Teth­er [USDT] takes the biggest share of this action. And the same sta­ble­coin tops the stand­ing when prof­it-tak­ing occurs. How­ev­er, the decen­tral­ized sta­ble­coin DAI could be cap­tur­ing some ground based on the recent actions of whales and sharks.

DAI has the support of the sea kings

Accord­ing to San­ti­ment, a lot of deep-pock­et­ed address­es have been exchang­ing Bit­coin [BTC], and Ethereum [ETH] for DAI since mid-March. 

This activ­i­ty has increased such that address­es hold­ing 100,000 to 10 mil­lion DAI have increased sup­ply by 6.4%.

Sure­ly, this was an indi­ca­tion that investors were already look­ing for a Binance USD [BUSD] replace­ment which was in its phas­ing-out stage.

Although the cen­tral­ized sta­ble­coin still had a larg­er mar­ket cap than DAI, this devel­op­ment might increase DAI’s chances of becom­ing the major alter­na­tive to USDT and Cir­cle [USDC]

Still, there are problems to tackle

But as it stands, it might seem that whales do not have the sup­port of the retail mar­ket with the use of DAI. This was because on-chain data showed that the 30-day active address­es which reached 81,800 around the first week of April, had decreased.

Look­ing at the met­ric at press time, San­ti­ment showed that it was down to 49,800. Active address­es act as an indi­ca­tor of wal­lets involved with trans­act­ing an asset. 

When the met­ric ris­es, it means that cryp­to traders are show­ing increased inter­est. But since the active address­es had reduced, it implies that the gen­er­al trans­fers using the sta­ble­coin were low.

DAI weighted sentiment and active addresses

Source: San­ti­ment

As per the weight­ed sen­ti­ment, San­ti­ment data showed that the met­ric had fall­en into the neg­a­tive zone. At –0.341, the met­ric sug­gests that the aura around the coin was more of pes­simism than elation. 


Real­is­tic or not, here’s DAI’s mar­ket cap in USDC’s terms


Fur­ther­more, the over­all num­ber of hold­ers with DAI in their port­fo­lio had increased. Since a decline to 479,000 on 13 March, many have accu­mu­lat­ed with on-chain data putting the num­ber at 503,000.

How­ev­er, DAI’s mul­ti-col­lat­er­al sup­ply had severe­ly tanked. The met­ric, which mea­sures how investors are bor­row­ing and lend­ing with the sta­ble­coin on Mak­er­DAO [MKR] was ‑657.95 million.

DAI total supply and collateral on MakerDAO

Source: San­ti­ment

Nonethe­less. DAI might still have more to fight for in the sta­ble­coin war. 



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