Yield Farming Fuels 623% Growth in DAI Supply to Nearly $1B

News • 2020/10/22 • by

The four months price of Ethereum based stable coins skyrockets as Dai grows by over 598%

Stablecoins experiences immense growth with decentralized finance. In data provided by aggregator Messari in the third quarter of 2020, MakerDAO Dai stablecoin increased with over 600% in supply.

DAI’s market cap since Jan. 1 2020
Credit: Messari

Major Updates:

This increment moved the value of DAI in the third quarter to over 1$.
The mining programs launched might be attributed to the growth of Dai.
Ethereum users can also be stablecoins holders when they deposit their Ethereum into MakerDAO protocols.
Etherium holders deposit their Ethereum into MakerDAO protocol, thereby creating Dai.
This process allows for the creation of stablecoins, which the Ethereum will be used as collateral.

Messari illustrates that Dai's growth over time can be attributed to some landmark events in the DeFi space. This includes the launch of yield framing for UNI in September and the launching of YFI in July.

Analytics from Flipside Crypto shows that growth in the demand for USDC has increased to 150% since the Curve's launch. The stablecoin space was estimated to have grown by over 8 billion USD in the third quarter of 2020.

What do you think about the latest development with stable coins? Let's discuss in the comments.

Source: Cointelegraph.

Comments (2)

Guest

godgrace1

6 years ago

i love the growth the stable coin market is achieving its really nice, this shows that more investors are interested in the DeFi and stable coins, which is really nice.

visiblemoney

6 years ago

The development around stablecoins have been impressive! That are just serving their purpose well that is while the market has been improving for all categories of stablecoins in 2020. The growth does not limit to DAO alone at over 600% boom as Tether also witnessed over 400% increases where USDC maintains over 150% incr. There has been Defi use cases and stability to value retention using stablecoins than any other assets and that is pivotal to their general boom.