Dai is one popular decentralized network that provides decentralized borrowing through Collateral. Dai is a perfect example of a fully decentralized Crypto network, unlike other cryptos. Here you can deposit your crypto as Collateral and borrow a loan according to the value of the deposit.
Dai also has its cryptocurrency (DAI) listed in many major exchanges. It is ranked under the 20th largest cryptocurrency with a market capitalization of $9 billion. If you are planning to invest in crypto, then you are in the right place. Dai is very much similar to Tether and Paux.
Dai is not backed by any technology; instead, it is supported by Collateral on the maker platform. However, it always maintains its price similar to the US dollar. Over the past year, Dai has received millions of dollars in seed funding from many big investors.
Page Contents
Overview
Dai was officially launched on December 18, 2017, on the Ethereum network. It was developed by MakerDAO named ground formed by Danish Entrepreneur Rune Christensen. Dai was launched to decentralize the current finances and banks. Dai is very much similar to Teather (USDT), but the US dollar does not back it; instead, Collateral is used to support Dai.
Many people consider Dai and USDT as safe heaven in the crypto market as it stays stable even during the market crash. Currently, there are over 9.8 billion Dai coins in circulation. Now it is ranked as the 19th largest cryptocurrency with a market capitalization of $9 billion. Dai tokens are not produced or mined, and it is minted through the Maker protocol.
Whenever you deposit in the Dai platform, your deposit will be kept on some vault as Collateral. After this, you will get the appropriate amount of Dai coin by hedging against your deposit. Similarly, you can collateralize at the ratio of 150%. For example, if you are depositing 150$ worth of Ethereum, you will get $100 worth of Dai token.
If the value of your Collateral declines over the period, it will be liquidated through the smart contract. On the contrary, if your weight of collateral increases, you can withdraw additional Dai from the platform. Later the returned Dai is destroyed, and you can remove your Collateral.
Dai Coin Future price prediction
Dai is a stable cryptocurrency similar to Tether (USDT), and it will maintain its value very much identical to the US dollar. If you plan to invest yourself in Dai, then it is not as profitable as you think. Most of you might be amazed by its decentralized finance ideas, but it will not provide you with a good ROI.
Dai is not backed by any Cryptocurrency, but it is supported by other cryptocurrencies using Maker protocol. Similarly, there are no specific numbers of Dai in circulation as every day, new Dai is created and destroyed from the circulation. Dai is a fair coin to be invested in during the market crash, and it will not lose its value like other cryptos.
Dai Price prediction 2023
According to the developer, the price of Dai is likely to remain the same over the coming year. Dai aims to provide stability in its coin by pegging against other cryptos. So, the price of Dai in 2023 is likely to remain the same as the US dollar. But, Dai is the very best currency to purchase during a market crash to save your investment.
Dai Price Prediction 2025
The price prediction of Dai for 2025 is $1; it won’t be increased above one dollar. At the time of Covid-19, there was higher volatility in the market, and the price of Dai was $1.22. But, currently, it is trading below one dollar and not more than one dollar.
Dai Price Prediction 2030
If you are planning to invest in Dai for the long term, then make sure to purchase Dai during the Dip. The price of Dai is likely to remain the same in the coming year, and it could be one or more cents less than one dollar, but there won’t be significant hikes and Dip in the price of Dai. But, there is a high opportunity if it purchases in Dip.
Conclusion
Dai is not a good investment option if you are considering it in your portfolio, and its price is very much stable and soft-pegged with the US dollar. This is why it is suitable to hold Dai during market crashes or to save your investment from decline.
It has an all-time low of $0.9 and an all-time high of $1.22. There is not much difference in its price range over the past couple of years. Besides this, you can Use Dai to borrow a loan from your investment or crypto, and it offers borrowing at a very low-interest rate with a fully decentralized system.
