DAI is a stablecoin pegged to the US dollar and based on the Ethereum network. At every point in time, it aims to maintain a 1:1 ratio with the US dollar value.
Maker Protocol and open-source software created DAI. It is a decentralized finance project operated on the Ethereum blockchain. DAI aims to provide collateralized loans for users.
Users can take loans while locking their ETH and other cryptocurrencies as collateral. DAI price has also been affected by the recent bear market in crypto.
Keep reading this dai price prediction to learn more about this unique project and its future.
What Is Dai (DAI)?
DAI crypto is a stablecoin that operates on the Ethereum blockchain. Dai is soft-pegged to the U.S. dollar and is collateralized by other cryptocurrencies deposited in smart contract vaults. This deposit takes place each time new DAI tokens are minted.
The purpose of DAI is to provide a stable and secure lending platform for businesses and individuals in the decentralised finance sector. DAI achieves this purpose while maintaining its decentralized nature in the technological niche.
A brief history of DAI
No single individual can be credited for the creation of DAI. Dai was created by; the maker DAO organization.
Rune Christensen founded this institution in 2015. The Maker DAO is an organization that operates in a decentralized manner. The two tokens of this organization are DAI and MKR.
DAI's official launch was on December 18, 2017, on the Ethereum network. MKR is the governance token of the MakerDAO network. Holders of this token vote on decisions concerning MakerDAO, DAI, and the Maker Protocol.
At inception, Ethereum was the only crypto asset that could be used as collateral through the Maker Protocol. Dai generated from this was known as single-collateral Dai (Sai). The Multi-collateral Dai system (MCD); was created in 2019 to replace it.
This new system supports any Ethereum-based crypto asset as collateral by users in the Dai swapspace. Dai is now ranked as one of the top tokenized stocks and is a global cryptocurrency project available on numerous cryptocurrency exchange platforms.
What protocol it uses
DAI uses the Maker protocol for its operations. This protocol helps to generate new Dai using smart contracts called Maker vaults. Users can use Oasis borrow or other interfaces to access these Maker vaults.
Using Oasis Borrow, collateral can be locked in to borrow Dai within the collateral ratio. The range is from 101% to 175%, depending on the risk level of the asset collateralized. ETH, LINK, UNI, MANA, MATIC, YFI, and WBTC are some of the assets accepted as collateral.
What makes it different from other cryptocurrencie
DAI’s soft peg to the US dollar and its collateralized loans offered to users makes it stand out from other cryptocurrencies. Volatility is a major challenge in the cryptocurrency world. DAI serves as a store of value for holders who can swap their crypto for DAI tokens on cryptocurrency exchanges.
Dai's main purpose is stability, as detailed in its whitepaper. It maintains its status as a stable currency with the help of digital assets and its USD peg. Its defi solutions have solved most problems encountered by traditional centralized financial institutions.
Dai, at a glance
Factors Influencing DAI Price
Several factors affect the price of digital assets. Market forces also act on the price action of the cryptocurrency.
Some prominent factors are:
The demand forces play a vital role in the price of any traded asset. When demand is high, the price trend is bullish, and vice versa. The crypto world is experiencing low demand due to the current bearish trend in 2022.
Although DAI is a stablecoin, the crash of Terra UST has made investors pessimistic about the reliability of stablecoins. A decline; in Dai’s market capitalization from $8 billion to $6.33 billion occurred.
The price of DAI is still relatively stable. But investors are currently considering liquidating tokens to fiat currency.
Dai has a circulating supply of 5,839,967,587 DAI. There is no known maximum supply for the coin. DAI also utilizes a burning mechanism to reduce its total supply and increase demand, driving the price up.
With this mechanism in place, there is hope for the price of Dai.
Macroeconomic factors also affect the price of digital assets positively or negatively. Factors like inflation and other fiscal policies like tax and interest rates are major players in the price of cryptocurrencies.
Most cryptocurrencies without a peg have seen their value plummet over recent months. The stablecoins also have displayed some level of volatility this year.
Crypto enthusiasts are hoping for a more positive economic turn globally for better price performance of crypto.
The worldwide money crunch could vary the indices that ideally make Dai a good investment.
General crypto market price trend
Dai is not immune to the general crypto market trend. The current slump has affected its recent price movement. Bitcoin, the dominant player in the market, has also seen a downward trend. Most altcoins follow the trend of bitcoin since it correlates with stocks like the S&P 500
DAI's Past Price Performance
DAI price history shows that it has experienced price volatility in recent times. Although it has maintained its soft peg to the US dollar, variance in price occurs.
Its all-time high of $3.67: was attained on November 16, 2021, while its all-time low of $0.9846 occurred on May 10, 2020.
Here are the historical trends of Dai.
Dai launch price
DAI a top tokenized stock was launched on December 18, 2017, and initially maintained its peg to the US dollar for over a year. One DAI was equivalent to $1 at launching. Dai's price history has been largely stable over the years.
The 2022 bearish trend
Compared to other cryptocurrencies, Dai has fared well in 2022 since it is a stablecoin. However, it has also had price variances, although not too steep from the $1 value.
How Is DAI Doing Now? Is Dai Bullish Or Bearish?
Data from CoinMarketCap reveals that the DAI price is currently on a bullish trend. It is currently trading at $1.00 with no major price variations. It has a 24-hour trading volume of $1,100,074,954.85, depicting an increase of 30.80% in 24 hours.
Its return on investment is currently up by 0.82%, presenting an opportunity for potential investors.
DAI Price Prediction Today
DAI is currently trading at $1.01 today. The average price is $1.00 and will test the key resistance level of $1.003.
Long-Term DAI Price Prediction For 2023
Dai's minimum, maximum, and average price in January 2023 is forecasted to be $1.0976230, $1.6141515, and $1.2913212. On the other hand, it is expected to spike at the end of 2023.
Here is the month-by-month Dai price prediction for 2023
Long-Term DAI Price Prediction For 2023 – 2030
With the current DIA price, here’s the long-term Dai coin price prediction from 2023 to 2030
Long-Term DAI Price Prediction By Experts
Expert opinions serve as a guide to making better trading decisions on an exchange platform, and if you have asked, "is dai a good investment?”. Here are some expert dai coin price prediction from 2022 to 2030.
Price forecasts by TradingBeasts
According to TradingBeasts, Dai coin price is expected to be in the range below from 2022-2027 on any global cryptocurrency exchange.
From this table showing dai crypto price prediction, the price of Dai is expected to increase gradually with time.
DAI price prediction by TradingBeasts
Amidst many expert coin price prediction, TradingBeasts have put up its price prediction. According to the internet company, Dai is expected to reach a maximum price of $1.2913567 by early December 2022.
The Maximum price expected is $1.6141959 and the minimum price is $1.6141959. Dai is expected to end the year at $1.2914567.
Dai price prediction 2023-2025 by Bitcoinwisdom
Using the Relative strength index and moving weighted average (MWA), Bitcoinwisdom predicts that Dai will trade at $2.01 in 2023 with a minimum price of 2.01 and a maximum price of $2.51. The average price for 2023 was pegged at $2.21.
For 2024, a minimum price of $3.01 is expected, and the maximum price is $3.52, with an average price of 3.22. In 2025 they expect further increases with a minimum price of $4.02, a maximum price of $4.52, and an average price of $4.22.
Dai price prediction by Walletinvestor
According to Walletinvestor, Dai Will hit a minimum price of 1.001 and a maximum price of 1.002 between 2022 and 2024. An average price of $1.001 is expected. Dai is also expected to meet resistance at $1.009, $1.006, and $1.003 and support levels at $0.996, $0.993, and $0.990.
The pivot point is expected at 0.999.
Dai price prediction by PricePrediction.net
According to PricePredicition.net, Dai will go bearish by 2030, which will be a noticeable decline. The minimum price will be $0.80, while the maximum price will be $0.82. The average price is expected to be $0.81
Price Prediction By Margex
Margex is a global cryptocurrency exchange platform that offers numerous digital assets such as BTC, ETH, XRP, SOL, EOS, USDC, USDT, etc. Traders can make profits using up to 100x leverage on our licensed platform and stake crypto assets as tokenized stock.
This crypto exchange service offers technical analysis, insights, and asset price behaviors to assist investors and traders. Here is our take on Dai’s future price performance on any crypto exchange.
From the chart, with the help of a donchian channel, there's a strong buy signal since the candles are in the upper channel. The stochastic oscillator below the chart also shows overbought since it is outside the normal channel.
DAI is showing a strong bullish sentiment and will likely break the $1.03 and $1.06 key resistance levels.
FAQ - Commonly Asked Questions On Dai Price Forecast
Find the answers to certain questions about DAI price in the future.
Will DAI crypto hit $100 soon?
While the project is quite promising, it is unlikely to hit $100 anytime soon. Dai as a stablecoin is pegged to the US dollar value of $1. This implies that the token will mostly fluctuate around that price range.
What price will DAI reach in 2025?
Some experts have predicted that DAI will be worth $1.2 by the end of 2025. However, these predictions are largely speculative.
What is DAI price forecast for 2030?
Dai might be worth at least around $8.12 by 2030. The possibility of exceeding or going below this prediction largely depends on other factors in the crypto market.
What will be the 5 years price of DAI?
DAI might hit between $2.67 to $3.17 in the next five years. A stablecoin dai will be relatively safe from price corrections in a bearish direction. However, it is important to note that even stablecoins are not invincible.
Is the future bright for DAI crypto?
Dai is not an investment for investors seeking fast returns. However, if you are looking for an investment in stability, this project might be a great fit.
How high will DAI price reach.?
The ultimate purpose of DAI is as a store of value and alternate currency. This implies that the price will likely remain unchanged for long periods. It is advisable to do proper research before investing in the project.
Can Dai crypto crash?
While it might take a catastrophic turn of events for such to occur, it is still a possibility, just like every other crypto project
Is Dai a good investment?
Depending on investor sentiment, dai is a good investment for maintaining the value of assets. However, per the expert predictions it will not record massive gains on global cryptocurrency platforms.