DAI Surpassed 100 Million Coins Issued
The popularity of Maker DAO grows, as more Ethereum (ETH) is at stake to produce DAI.
Maker DAO has grown the popularity of its DAI stablecoin, even before the issuance of multi-collateral DAI. The current asset, which from November 18 will be known as SAI, has surpassed 100 million coins issued.
The absolute record of DAI issuance was reached after a few weeks of highly active issuance. After some turbulence in late October, where the DAI count even shrank to 79 million, confidence returned as Ethereum (ETH) prices stabilized.
The ETH staked in the Maker smart contract is now inching up to above 1.76 million, with DappRadar data showing above 2.2 million ETH locked.
The 100 million milestone was also the “debt ceiling” for DAI issuance. That number was reached a little more than a year after the Maker DAO started operating. Now, a new issuance limit has been proposed for a vote.
The Maker DAO will most likely accept a new lower 5% stability fee, and a ceiling of 120 million DAI to be issued.
Due to heightened popularity, the MKR market price has skyrocketed again, to $669.02. MKR ownership for voting is a barrier to entry, and for now, mostly “whales” decide the parameters of crypto lending.
The ascent of Maker DAO is part of the general trend for DeFi schemes, where DAI is gaining importance. The stablecoin is relatively small in comparison to dollar-backed assets like USDC, Tether (USDT), and others. But the ascent of the supply gained the attention even of Weiss Ratings.
The Maker scheme was also discussed in a recent paper on stablecoins authored by economists from the European Central Bank. Some of the biggest risks for DeFi remain within the realm of regulations, as there is still no framework to legalize crypto lending and the issuance of DAI.
Other risks include the aim to preserve the stability and liquidity of DAI, despite the potential repercussions of the update to ETH 2.0.
The popularity of DeFi helped support the ETH market price, which settled around $187.24, seemingly unaffected by the drop in Bitcoin (BTC).