After four months, the ethereum-based stablecoin DAI looks to be maintaining a steady dollar valuation.
Since January, the theoretically USD-pegged token has fallen below dollar valuation, trading hands at or above $1 only sporadically. However, for the past few days, DAI across four different cryptocurrency exchanges has been exchanging above the dollar level and is worth exactly $1 at press time.
MakerDAO is currently the most popular decentralized finance application in the crypto space, according to site DeFi Pulse. There is an estimated 87 million DAI presently in circulation, according to blockchain analytics site Alethio, and an estimated $300 million worth of ether locked in the MakerDAO system that supports the token’s value.
As of now, there are still a number of bids occurring below $1, as recorded by data scientist Alex Svanevik. Specifically, roughly $600,000 in DAI tokens are still trading on leading cryptocurrency exchange Coinbase between the $0.98 and $1.00 range.
However, as Svanevik notes, this is a measurable increase from trades as low as $0.95 which have taken place on Coinbase in the last two months.
“So now that DAI has recovered to [about] $0.99, this is by many considered ‘close enough’ to the $1 peg.” Svanevik told CoinDesk.
To this, David Hoffman – COO of cryptocurrency real estate platform RealTPlatform – reaffirmed in a community call Tuesday that discussions over the DAI dollar peg could soon be moving into “a new phase.”
“The last three months has been how do we get DAI back to a dollar and now it’s looking like DAI is strongly above 99 cents,” Hoffman said during the call. “That brings into relevancy a bunch of new questions like how close to a dollar should we have? What is an acceptable bound to be around a dollar…How long do we want DAI to be around 99 cents to a dollar before we claim that the peg is fixed?”
A healthy peg