What could affect the price of DAI?
Dai’s $1 value faces complex challenges from regulations, risks tied to its collateral, and competition in decentralized finance (DeFi).
- Regulatory Scrutiny – New global stablecoin rules could affect demand and how collateral is managed.
- Collateral Volatility – Big swings in Ethereum (ETH) prices could trigger forced sell-offs, risking Dai’s stability.
- DeFi Competition – Other stablecoins and platforms are competing for Dai’s market share.
Deep Dive
1. Regulatory Headwinds (Mixed Impact)
Overview:
New laws like the U.S. GENIUS Act (2025) and the EU’s MiCA framework are setting stricter rules for stablecoins, including requirements for full reserves and licensing. Dai’s decentralized design means it doesn’t have a central issuer, which reduces some regulatory risks. However, regulators may focus on its use of crypto assets as collateral or how its governance works.
What this means:
These rules could increase costs or limit Dai’s use in regulated markets. On the flip side, clearer regulations might build trust among institutions if MakerDAO adapts by adding more real-world assets (RWAs) as collateral. MakerDAO has already proposed expanding vaults backed by RWAs (Crypto.com), showing they’re actively managing risks.
2. Collateral Risks & ETH Dependency (Bearish Risk)
Overview:
About 60% of Dai’s collateral is Ethereum (ETH) and its staked derivatives. If ETH’s price drops sharply—say more than 30% in a few days—it could trigger mass liquidations of collateralized debt positions (CDPs). This would force Dai’s supply to shrink or cause temporary breaks from its $1 peg.
What this means:
For example, in August 2025, a hacker from Radiant Capital swapped $53 million worth of stolen ETH into Dai during a market downturn, briefly increasing selling pressure (Crypto.news). While MakerDAO requires collateral to be worth at least 150% of the Dai issued, protecting against some volatility, ETH’s price swings remain Dai’s biggest vulnerability.
3. DeFi Competition & Yield Dynamics (Mixed Impact)
Overview:
Competitors like USDC and MetaMask’s new mUSD (launched August 2025) offer simpler ways to earn higher yields. Dai’s savings rate (DSR) changes based on governance decisions and currently sits around 4.5%, compared to USDC’s 5.2% yield on Coinbase.
What this means:
Lower yields might reduce demand for Dai, but its decentralized nature and resistance to censorship make it attractive in countries with unstable currencies. After MakerDAO lowered its Stability Fee, the total value locked (TVL) in its vaults grew by 12% (CoinJar), showing it can respond well to market changes.
Conclusion
Dai’s ability to stay stable depends on balancing regulatory compliance, the health of its ETH collateral, and competitive yields. While sudden market shocks could cause short-term breaks from its $1 peg, its decentralized governance and growing use of real-world assets offer long-term strength. Will ETH’s price hold steady in late 2025 to help Dai withstand regulatory challenges? Keep an eye on MakerDAO’s governance decisions and ETH’s $4,500 support level.
What are people saying about DAI?
DAI’s stability and use in decentralized finance (DeFi) are sparking discussions, while hackers and large investors keep it in the news. Here’s what’s trending:
- Decentralized vs. algorithmic stablecoins – DAI’s collateral system is under scrutiny.
- Hackers target DAI – Over $45 million in stolen funds moved into DAI for ETH purchases.
- MakerDAO’s rebranding impact – The switch to Sky Protocol is causing some uncertainty.
Deep Dive
1. @0xMoon6626: Mixed views on DAI’s collateral risks compared to competitors
“DAI depends on having more collateral than the value it issues, but big drops in ETH or WBTC prices could cause it to lose its peg.”
– @0xMoon6626 (2.1K followers · 12K impressions · 2025-08-30 08:22 UTC)
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What this means: Opinions vary as traders consider DAI’s proven collateral approach versus newer algorithmic stablecoins like USDe. MakerDAO’s $5.36 billion collateral reserve remains a key factor to watch.
2. @Onchain Lens: Coinbase hacker accumulates DAI — a negative sign
“A hacker is holding $45.36 million in DAI across multiple wallets after swapping stolen ETH.”
– @Onchain Lens (18K followers · 3.2M impressions · 2025-07-07 09:06 UTC)
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What this means: This is a negative for DAI’s reputation since large-scale illicit activity could lead to increased regulatory attention, although the overall liquidity on the blockchain remains stable.
3. @CoinJar: Confusion around Sky Protocol migration — neutral impact
“Old DAI can still be converted to USDS, but some exchanges like Bitvavo plan to delist it by December 2024.”
– @CoinJar (89K followers · 420K impressions · 2024-10-04 03:21 UTC)
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What this means: The short-term impact is neutral as MakerDAO focuses on long-term governance improvements, but fewer exchanges supporting DAI could slow adoption.
Conclusion
The overall view on DAI is mixed. It remains a key player in DeFi but faces challenges from new competitors and regulatory risks. Keep an eye on the DAI/USDS conversion rate after the Sky Protocol launch in September 2025 to gauge user confidence. The big question remains: does true decentralization still outweigh convenience when it comes to stablecoins?
What is the latest news about DAI?
DAI continues to play a key role in decentralized finance (DeFi), with new partnerships and ongoing discussions about its stability. Here’s the latest update:
- Top DeFi Platform (September 12, 2025) – DAI remains a leading choice for DeFi lending and borrowing, despite growing competition.
- MKR Relaunch on Bitverse (September 5, 2025) – Sky Protocol (formerly MakerDAO) integrates DAI into a new perpetual trading platform.
- Stablecoin Comparison (August 30, 2025) – DAI’s collateral risks are examined as stablecoins gain popularity.
Deep Dive
1. Top DeFi Platform (September 12, 2025)
Overview:
DAI was ranked #4 in BTCC’s list of “Best DeFi Platforms of 2025” because of its role in secured loans and stablecoin creation. The report highlights DAI’s $5.36 billion circulating supply and its decentralized governance through Sky Protocol (the new name for MakerDAO).
What this means:
This shows that DAI is still very useful for DeFi lending, but it faces strong competition from stablecoins backed by traditional currencies like USDC. Since DAI is backed by cryptocurrency collateral, its value can be affected by price swings in assets like Ethereum (ETH).
(BTCC)
2. MKR Relaunch on Bitverse (September 5, 2025)
Overview:
Bitverse PerpDEX recently added Sky (previously known as MKR) to its platform, highlighting DAI’s history as MakerDAO’s stablecoin. This update allows traders to use up to 10x leverage on trading pairs involving DAI, USDC, and USDT, aiming to boost liquidity in DeFi derivatives.
What this means:
Although DAI isn’t the main focus here, this change signals a gradual shift toward USDS, Sky Protocol’s upgraded stablecoin. Traders might start using USDS more, which could reduce DAI’s dominance within the Maker ecosystem.
(Bitverse)
3. Stablecoin Comparison (August 30, 2025)
Overview:
A recent analysis from China compared DAI’s overcollateralized model to other stablecoins like USDe (which uses algorithms) and USDD (backed by a Peg Stability Module). DAI’s yield on Aave was 3.24%, lower than USDD’s 6-10%, but DAI was praised for its decentralized structure.
What this means:
DAI’s lower yield might make it less attractive to some users, but its strong resistance to censorship keeps it important for those who value decentralization. The report also warned that if Ethereum’s price drops sharply, DAI could temporarily lose its peg to the US dollar.
(0xMoon6626)
Conclusion
DAI continues to hold a unique position in DeFi thanks to its decentralized governance and ongoing improvements. However, it faces challenges from higher-yield stablecoins and the risks tied to crypto collateral. The rise of Sky Protocol’s USDS stablecoin may impact DAI’s market share, but both could coexist as options for users seeking decentralized alternatives.
What is expected in the development of DAI?
Dai’s development is moving forward with these key updates:
- USDS Transition (2024–2025) – Dai will gradually be replaced by a new stablecoin called USDS, as part of the Sky Protocol rebrand.
- FRAX Integration (Q4 2025) – MakerDAO plans to expand liquidity by partnering with Frax Finance, allowing Dai and USDS to support Frax’s stablecoin system.
- RWA Collateral Expansion (2026) – Sky Protocol will increase the use of tokenized real-world assets, like U.S. Treasuries and corporate debt, as collateral.
Deep Dive
1. USDS Transition (2024–2025)
What’s happening:
In 2024, MakerDAO changed its name to Sky Protocol and started shifting from Dai to USDS, a new stablecoin with improved governance features. Current Dai holders can swap their Dai for USDS at a 1:1 rate using smart contracts. However, new benefits, such as the Sky Savings Rate, will only be available with USDS.
What this means for you:
If you hold Dai, your coins remain valuable and can be exchanged for USDS without loss. But over time, Dai’s role will shrink as USDS becomes the main stablecoin, aiming to make decentralized finance (DeFi) easier to use and attract more users to Sky Protocol.
2. FRAX Integration (Q4 2025)
What’s happening:
According to a community-approved plan (The Defiant), Sky Protocol will work with Frax Finance to share liquidity across platforms. This means Dai and USDS will help support Frax’s algorithmic stablecoin system.
What this means for you:
This partnership could increase the availability and demand for Dai, since Frax has a market cap over $900 million. But it also means that if Frax experiences problems, it could affect the stability of Dai and USDS.
3. RWA Collateral Expansion (2026)
What’s happening:
Sky Protocol plans to boost the amount of real-world assets (RWAs) used as collateral from 35% to 50% by 2026. These assets include tokenized U.S. government bonds and corporate debt (S&P Global).
What this means for you:
Using RWAs can make the stablecoins more stable and reliable. However, relying on centralized custody of these assets (like Circle’s USDC reserves) moves away from Dai’s original goal of being fully decentralized.
Conclusion
Dai’s future focuses on rebranding to USDS, expanding liquidity through partnerships, and integrating real-world assets to strengthen stability. The big question remains: will USDS’s more centralized approach change Dai’s reputation as a pioneer of decentralized stablecoins in DeFi?
What updates are there in the DAI code base?
I wasn’t able to find useful information to answer this question right now. The CoinMarketCap team is continuously updating my crypto knowledge, so if any important details become available, I should have them soon. In the meantime, please feel free to choose another question or cryptocurrency for analysis.