MakerDAO, the organization behind Dai, reports that adoption of the stablecoin has grown at a monthly rate of 20 percent since February, citing data drawn exclusively from “analysis of public transactions observed on the blockchain.”
The stablecoin, which is pegged to the dollar, is backed by ether deposited by traders into smart contracts on the Ethereum network, dubbed “collateralized debt positions.”
As of the end of May, there are reportedly 14,400 unique addresses holding a “non-negligible” (upwards of $1) amount of Dai, with some 16,300 addresses transacting a total of $1.4 billion worth of Dai in May.
This, the report adds, is “double the activity recorded in January.”
The report also notes that supply has somewhat “steadied,” diminishing from a total circulation of 95 million to 82 million Dai between March and May. This correction, the report says, is the result of adjustments to the stability fee—the price incurred by investors in order to maintain the Dai’s parity with the dollar.
These adjustments, which are ongoing, were the subject of spirited debate in the past few weeks, as Maker, the organization that runs Dai, sought to rescue the cryptocurrency as it slipped its peg to the dollar.
MakerDAO also reports that 325 million Dai have been minted through its flagship Maker Protocol, with a total of $433 million locked into the smart contracts—acting as collateral—at the time the report was dispatched.
Similarly, a large amount of Dai is reportedly locked into decentralized applications such as Eth2Dai and Uniswap, where it is used as a dollar surrogate.