Ethereum
Ethereum Stablecoin Volume Soars in April, Fueled by DAI
The month of April witnessed a monumental increase in the total volume of stablecoins traded on Ethereum, with DAI becoming the main contributor to this unprecedented growth. The rise in DAI volume can be attributed to its growing involvement in complex miner extractable value (MEV) transactions, often facilitated by flash loans.
Record month
After several months of stagnant activity, Ethereum’s total monthly stablecoin volume has seen a steady rise over the past three months, culminating with April’s historic milestone. It is critical to note that flash loan activity is included in these figures, significantly amplifying the overall volume.
The role of DAI in the rise of power
DAI has become the main catalyst for Ethereum’s stablecoin volume to skyrocket, with its involvement in complex MEV transactions attracting particular attention. Notably, a single transaction added nearly $1 billion to DAI volume, demonstrating its central role in the Ethereum ecosystem.
DAI performance in April
In April, DAI volume surged to $636 billion, making up the majority of Ethereum’s total on-chain stablecoin volume, which reached nearly $1.2 trillion for the month. DAI’s supply has also seen substantial growth, adding approximately $1 billion in tokens since March 7, bringing the current supply to 5.44 billion.
Potential challenges ahead
Although DAI’s performance has been exceptional, competitors like Ethena’s USDe and Ripple’s upcoming stablecoin pose potential challenges to its dominance. Nonetheless, the supply of DAI has continued to grow, with an additional $220 million added since May 1, as MakerBurn reports.
Market response
Despite the increase in DAI volumes, the price of Maker, the token associated with MakerDAO, saw a decline throughout April. However, an uptick in early May hints at potential market resilience amid the growing importance of DAI in the stablecoin landscape.
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