DAI faces competition from other stablecoins like Tether, USD Coin, etc. There is a growing demand for stablecoins due to their functionality to move value with low slippage. From the market outlook, DAI could be losing popularity judging from the trading volumes, although it has remained stable over time. Look no further if you are looking for DAI price prediction for 2022-2025. We will analyze the past pricing to determine what to expect in the future.
What is DAI?
Rune Christensen founded MakerDAO in 2015. It is a decentralized stablecoin fully collateralized and pegged to the US dollar. The stablecoin is kept in crypto wallets and based on the Ethereum network. DAI is issued and managed by Maker decentralized autonomous organization.
MakerDAO envisions a cryptocurrency hedging opportunity to protect against volatility in the cryptocurrency sector. MakerDAO maintains transparency by keeping all Dai transactions visible on the Ethereum blockchain. The DAO also intends to use DAI in lending due to its low volatility.
Maker Protocol is software for DAI issuance based on the Ethereum blockchain. The software maintains the price peg to the USD by ensuring that many other cryptos back the DAI tokens. The protocol enables users to deposit crypto into vault smart contracts and mint the corresponding amounts of DAI tokens. The smart contracts use a dynamic system of Collateralized Debt Positions that lock up DAI and allow for the minting of new tokens.
DAI can be generated by depositing collateral assets into Maker Vaults in the Maker protocol. The digital asset can be purchased through exchanges or circulated in payments. The price of DAI is collateralized by a suite of cryptos that are deposited into smart contracts vaults whenever a new DAI token is minted. All the circulating DAO tokens are backed by a dollar value higher than the Dai debt.
DAI: should you invest in DAI today?
Whether to invest in DAI or not depends on the volatility of the crypto market. DAI remains an important stablecoin asset to protect against price volatility. It is recommended that you have part of your crypto assets in stablecoins and another in other cryptos. Currently, the crypto market is facing a bearish momentum, and it becomes ideal to have a substantial portion of a portfolio in stablecoins like DAI.
An ideal indicator of the health of the DAI is the past daily trading volumes. Today’s Dai price is $1.0022, up <1% over the last 24 hours. The past week has also seen declining daily trading volumes by $329.96 million to $267.26 million, a dip of 19%. The year-to-date daily trading volumes have plummeted from $379.38 million to $289.69 million, equivalent to 23.64%.
DAI price prediction for 2022?
Although DAI is a stablecoin pegged to the value of the USD, the peg is not always constant, and the price often deviates. We will predict the extent to which DAI may move away from the peg. A perfect prediction is nearly impossible in every market, and further research is recommended.
Our in-depth 2022 DAI price analysis projects that DAI could rise to a high of $1.008, as a deviation from the $1 peg, and $0.9992 to the downside. The maximum price that DAI can jump to in 2023 is $1.006 to the upside and can dip to as low as $0.9993 in the period. DAI is also expected to rise to as high as $1.007 as the maximum deviation and $0.9997 to the downside. The stablecoin could rise to a high of $1.004 to the upside and $0.9998 to the downside as more stability is recorded.
DAI past price analysis
CoinMarketCap ranks DAI tokens at number 16 in the crypto list with a market capitalization of $6,467,372,632.
The latest price data shows that DAI is currently trading at $1 in a 0.09% drop in the past 24 hours and a 0.08% increase in the past seven days. The monthly price outlook shows that DAI has fallen 0.029%. In the past three months, DAI has increased 0.1% from a low of $0.999.
DAI is down 0.97% since trading at a high of $1.0098 in the past year. The highest deviation from the dollar peg in the period was recorded on 12th June 2021, when the token rose to a high of $1.0098 and towards the end of 2021, when it tanked to $0.9878.
Want to buy DAI?
DAI token is listed on major exchanges, including centralized platforms like Binance, Coinbase Pro, Uniswap, OKEx, and HitBTC. The token is also available on decentralized exchanges like Uniswap and Compound. To buy DAI on Coinbase, follow these steps:
Register an account with Coinbase and verify details, including the ID.
Choose a payment method and connect your account. You can use the option of a bank account, a debit card or a wire transfer.
Select Dai from the listed items using the search bar.
Enter the amount to purchase using the preview buy and finalize transactions.