DAI Price

How does Dai work?

Being the first decentralized stablecoin of its kind, figuring out how does Dai work helps us understand why it exists in the first place. Other stablecoins present in the market are controlled and run by central authorities, but dai maintains a 1:1 value with USD without them. The idea is locking cryptos in a smart contract to keep their value intact. Dai has a whole ecosystem of Ethereum-based smart contracts.

Dai value can be figured out through its collateralized debt positions, or CDPs, which can be considered secured vaults. Within these vaults, collateral can be locked away for good, but it also has the ability to provide liquid crypto assets. As cryptos are used as collateral, their volatile nature causes dai to overcollateralize most times. This helps in avoiding moments of liquidation as a non-volatile and secure lending asset.

The stability of the dai price is the main highlight of this crypto. After it launched, the developing company relinquished all authority on the platform to keep dai a truly decentralized crypto endeavor.

The DAI price history

Dai emerged as a different and decentralized breed of stablecoin in 2017. It was an open-source project by Maker Protocol. DAI meaning is hidden under its basic features, which highlight its difference from all other USD-backed coins out there. It was the only decentralized answer to other controversial and centralized stablecoins.

Dai is strictly a decentralized loan secured by Ethereum, which is why ETH users can seek dai loans from MakerDAO. So, dai's price history remains largely uneventful, except for a few significant ups and downs. There have been a few drastic diversions in dai prices that are atypical for a decentralized stablecoin. In September 2020, dai reached above $1, and after the famous crypto bull run, this stablecoin surprisingly reached an all-time high of $3.66.

Factors influencing the price of dai

Dai prices can be found fluctuating between $0.8 and $1 at any point on a crypto price tracking website. Like every other stablecoin, dai is also designed to stay pegged 1:1 with the US dollar at any instant. But there are reasons for this stablecoin to keep changing value.

The price of dai keeps changing on the basis of demand forces, which means if the demand for dai somehow exceeds a certain level, then its prices undergo a change. It also has a limited circulating supply, which creates a problem of sorts. Lastly, as dai is a part of the general crypto market, sometimes the overall market sentiments control its prices.

What is dai price today?

Dai price today is around $0.99 with a 0.06% downtrend, according to the leading crypto tracking websites. The downtrend could have been caused by Bitcoin, as the general crypto market is also experiencing low gains at the time of writing. Based on its price, market capitalization, and price trends, dai is currently ranked as the 17th largest crypto in the global market.

Checking the dai price live is important when one decides to buy, sell, or use it for a crypto swap. The current dai price is a representation that it won’t reach extreme values like before. But as the maximum supply is unavailable, these prices are subject to change.

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