Try Quests to earn cryptoIntroduction
DAI differs from other leading stablecoins in a very important way: Unlike other stablecoins which are backed by a single fiat currency, DAI is a multi collateral-backed cryptocurrency. Anyone who has collateral -some Ethereum assets- can leverage them to generate Dai on the Maker Platform (Source: The Dai Stablecoin System Whitepaper, 2017). This asset will be frozen and be considered as the backing of stable DAI.
Four months ago, DAI on-chain data analysis revealed that: >The daily volume of DAI is growing. And overall DAI performance is healthy.
However, aftermath of LUNA-backed UST, another algorithmically stablecoins, there is an urgent need to revisit the DAI performance using learns that we obtain from that tragic incidents.
This dashboard is inline with the previous dashboard (https://app.flipsidecrypto.com/dashboard/dai-bounties-dai-volume-aZCWsq) investigates the volume of DAI transactions on the Ethereum blockchain and compare it four other leading stablecoins: USDt, USDC, BUSD and UST.
BUSD as a stablecoin and data for year 2022 are new in this dashboard.
The following three graphs visualizes the daily volume and number of DAI transactions in comparison with other stablecoins over time.
Some spike in amount of DAI transactions can be seen. Also we can see the growing use of USDC.
The graph below shows how DAI has been used for. We can see that dex use has become dominant while last year defi was the major use of DAI.
However, the dominance of DEX could be temporarily due to the turbulence of UST arbitrage or other seasonal activities.
The graph below shows the dominance of use over time. We can see that the relative use of DEX is growing.
Type of transfers comparison
The graphs below show how stable coins differed in terms of usage in 2022. In 2021, stablecoins has mainly used for CEX (for instance USDT), dapp (for instance UST) and dex (USDC). However, DAI has mainly used for defi.
However, as the data shows, Dex became the main use of DAI in 2022. BUSD and USDT are used mainly for transferring to CEXes. Still DAI is used for Defi more than the other stablecoins relatively.
Notable Findings
How does the daily volume of DAI transactions compare to other stablecoins?
The 2021 growing trend of daily volume has been flatten since January 2022. There is no major difference in fluctuation of daily transfer between DAI and other stablecoins regardless of type of transfers.
What is DAI most used for?
When we take into account the type of transfers. the difference between DAI and the other stablecoind is significant. DAI is mainly used for DEX and DeFI unlike other stablecoins.