With its peg to the dollar, the practical stablecoin DAI lowers volatility and makes it possible to employ various DeFi functions, including lending, borrowing, and trading.
Dai is a stablecoin that is tied to the value of the dollar. MakerDAO, DAIi’s decentralized governance community, controls its value to ensure its price stability. The Maker Protocol platform of DAI, which takes a number of cryptocurrencies as collateral, is where genuine DAI stablecoins are created.
What Is Dai (DAI)?
DAI, the first decentralized cryptocurrency with collateral backing, uses contracts to look at other cryptocurrencies to maintain a constant 1:1 value with the dollar.
As a result, DAI, unlike other asset-backed cryptocurrencies that may be released y for-profit businesses, is a creation of the Maker Protocol, an open-source, decentralized program that runs on top of the Ethereum blockchain.
As a result, DAI maintains its value through collateralized debt in ether (ETH), the cryptocurrency used by Ethereum, rather than being backed by U.S. dollars held in trust by a business.
How Does Dai Work?
Users who wish to purchase DAI have two options:
- They may utilize the Maker Protocol to collateralize ETH and other assets
- They can spend ETH to buy the Dai equivalent in dollars in an exchange
Users who aren’t willing to sell their ETH can still buy DAI via the latter way.
DAI is frequently over-collateralized, meaning that the minimum deposit amount is frequently greater than the value of DAI to take into account the volatility in the crypto collateral.
Users must, for instance, spend $200 in ETH to obtain $100 in DAI, which is intended to compensate for the possibility that the value of ETH may decline therefore, the $100 in DAI would still be securely collateralized by $150 in ETH even if ETH depreciates by 25%.
The user must return the DAI and pay a stability charge in order to get access to the stored ETH.
Currency Prediction Dai (DAI) Price Prediction
Based on the Dai coin price history, we came up with our own price prediction for the coin.
Currency Prediction Dai (DAI) Price Prediction 2022
Currently, DAI is trading at a price of $0.99. However, we predict that by the end of 2022, the coin might reach a maximum price of $342, a minimum price of $1.52, and an average of approximately $2.98
Currency Prediction Dai (DAI) Price Prediction 2023
For 2023, we at Currency Prediction expect that DAI might increase significantly. We predict that DAI can start 2023 at a trading price of $2.76 and eventually reach a maximum price of $5.42. The minimum and average estimated prices for this year are between $2.59 and $4.67.
Currency Prediction Dai (DAI) Price Prediction 2024
We predict that the price of DAI might increase further in the future. Therefore, by 2024, we expect that DAI can reach a maximum price of $8.19, a minimum price of $4.63, and an average price of $7.62.
Currency Prediction Dai (DAI) Price Prediction 2025
In 2025, we at Currency Prediction suggest that the price of DAI might surpass the $10 value, therefore reaching a maximum price of $11.21. However, if the market crashes, then DAI might reach a minimum price of $8.78 and an average of $10.39.
Currency Prediction Dai (DAI) Price Prediction 2026
To conclude our prediction, by 2026, we expect that DAI can reach a maximum price of $14.07, thus, reaching a new high. On the other hand, the coin might also reach a minimum of $10.32 and an average of $12.24.
How To Buy Dai (DAI)?
We will show you how to buy DAI coins in Coinbase in a few simple steps.
Step 1: Open An Account
The first step you need to take if you want to buy DAI coins is to open an account.
To open an account, you must put in a username and a strong password. After you open the Coinbase account, the next step is to verify it by using a valid ID.
Step 2: Fund Your Account
The second step is to fund your account. In Coinbase, you can use a bank account or debit card or initiate a wire transfer in order to deposit funds into your account.
After choosing your preferred depositing method, you can go ahead and enter the amount of money you want to deposit.
Step 3: Buy DAI
After depositing funds into your account, the last step is to buy DAI.
Select DAI from the list of assets, enter the amount you want to buy and finalize your purchase.
Frequently Asked Questions (FAQs)
Is DAI a good investment?
It might be. Our forecasts and many other experts forecast expect that the price of DAI can increase in the future and, as such, could generate great long-term profit. However, this is not financial advice. We suggest that you conduct your own research before investing in any coin.
Will DAI reach $10?
We predict that DAI might reach $10 and even surpass that and reach $11.21 by the end of 2025. DAI is a coin will a lot of potentials, so we will see if the coin exceeds or doesn’t meet our expectations.
Takeaways
- DAI lowers volatility and makes it possible to employ various DeFi functions.
- DAI is the first decentralized cryptocurrency with collateral backing.
- Users who aren’t willing to sell their ETH can still buy DAI via the latter way.
- DAI is expected to reach $15 by the end of 2026.
