What could affect the price of DAI?
Dai’s dollar peg is facing complex challenges from changes in governance, competition among stablecoins, and new regulations.
- Governance Changes – Sky’s move to launch USDH could shift focus away from Dai (Mixed Impact)
- Stablecoin Competition – Higher-yield stablecoins like USDe and USDD threaten Dai’s position in DeFi (Negative)
- Regulatory Pressure – The upcoming GENIUS Act may limit how Dai operates (Potential Risk)
In-Depth Analysis
1. Governance Changes & Sky’s USDH Launch (Mixed Impact)
Overview:
Sky, formerly known as MakerDAO, plans to issue a new stablecoin called USDH through Hyperliquid, offering attractive yields around 4.85%. While this expands Sky’s ecosystem, it might divert attention and resources away from improving Dai (Crypto.news).
What this means:
In the short term, Dai’s demand should remain steady thanks to existing partnerships. However, if USDH becomes the main focus, innovation and development for Dai could slow down. Also, splitting resources between Dai and USDH might cause some price fluctuations due to arbitrage opportunities.
2. Yield Competition & Decentralization Tradeoffs (Negative)
Overview:
Stablecoins like Ethena’s USDe, offering 9% annual yields, and Justin Sun’s USDD, with 6-10% yields on centralized exchanges, put pressure on Dai’s lower 3.24% returns on Aave. Because Dai is overcollateralized (backed by more assets than its value), it can’t easily increase yields like algorithmic stablecoins can (X post).
What this means:
Investors looking for higher returns might move their funds to these competing stablecoins, which could reduce Dai’s $5.36 billion supply. Still, Dai’s decentralized design offers a safer option during market crises, as seen when USDC lost its peg in 2023.
3. Regulatory Challenges & Collateral Restrictions (Potential Risk)
Overview:
The U.S. GENIUS Act, set to take effect in 2026, bans stablecoins that pay yields, directly affecting Dai’s Savings Rate feature. Additionally, S&P has given Sky a B- credit rating, highlighting concerns about its centralized governance and low capital reserves (The Defiant).
What this means:
New rules may force Dai to shift its collateral from crypto assets to safer government bonds, which could reduce its decentralized nature—one of its main strengths. Regulatory crackdowns on “unregistered securities” might also cause Dai to temporarily lose its $1 peg, similar to what happened with USDC in March 2023.
Conclusion
Dai’s ability to maintain its $1 peg depends on balancing its decentralized principles with competitive yields and regulatory compliance. While it has remained stable through past challenges, upcoming governance decisions and the GENIUS Act enforcement in June 2026 will be critical.
Keep an eye on: Will Sky’s USDH project help grow the ecosystem or distract developers from Dai’s future?
What are people saying about DAI?
DAI continues to be a key player in the crypto world, balancing usefulness with some controversy. Here’s the latest:
- Hackers are using DAI to launder stolen Ethereum (ETH)
- Stablecoins like DAI remain dominant with a market cap over $250 billion
- Decentralized finance (DeFi) platforms are making it easier to earn interest with DAI
Deep Dive
1. Hacker’s $12.5M DAI-to-ETH Swap
A hacker stole funds from a Coinbase user and used $12.5 million worth of DAI to buy 4,863 ETH at about $2,569 per ETH. The hacker still holds over $45 million in DAI across different wallets.
– Source: @OnchainLens
What this means: This is bad news for DAI’s reputation because its easy liquidity makes it a popular choice for moving stolen money. However, this doesn’t affect DAI’s price stability.
2. Easy Passive Income with DAI
Wallet providers like Trust Wallet now let users earn interest on stablecoins like USDT, USDC, and DAI without complicated steps—just built-in features in the wallet.
– Source: @TrustWallet
What this means: This is good news for DAI’s usefulness. Making it simple to earn yield encourages more people to use DAI in DeFi, strengthening its role in the stablecoin market.
3. MakerDAO Rebrands as Sky Protocol
MakerDAO, the organization behind DAI, has rebranded to Sky Protocol and is listing its governance token $MKR on Bitverse with new trading options.
– Source: @BitverseApp
What this means: This change could split the community and liquidity between DAI and the new USDS token from Sky Protocol. It’s a mixed signal—some uncertainty but DAI’s established use remains strong.
Conclusion
DAI is a major stablecoin with a $5.36 billion market cap as of September 2025, widely used in DeFi for its stability and liquidity. However, its involvement in laundering stolen funds has raised concerns. The recent rebranding of MakerDAO to Sky Protocol may impact DAI’s future demand and liquidity. Keep an eye on DAI’s circulating supply (currently 5.36 billion) for signs of how these changes affect its use.
What is the latest news about DAI?
DAI continues to lead as a stablecoin while navigating new partnerships and security challenges. Here are the key updates:
- Hackers Use DAI to Cash Out Stolen Funds from UXLINK (September 25, 2025) – $6.8 million in stolen Ethereum was converted into DAI, raising concerns about security.
- Sky Proposes Issuing Hyperliquid’s USDH Stablecoin (September 9, 2025) – Formerly known as MakerDAO, Sky offers $2.2 billion in liquidity and a 4.85% yield to support USDH.
- Bitverse Lists MKR Highlighting DAI’s Role (September 5, 2025) – Bitverse’s new platform features MKR with connections to DAI’s pioneering stablecoin status.
In-Depth Look
1. Hackers Use DAI to Cash Out Stolen Funds from UXLINK (September 25, 2025)
What happened: Hackers stole $6.8 million worth of Ethereum from UXLINK. To avoid having their assets frozen, they converted the stolen ETH into DAI on the Ethereum blockchain. UXLINK is responding by creating an on-chain tool to help users move their tokens safely. Experts have criticized UXLINK for having centralized weaknesses that made the hack possible.
Why it matters: This event shows how DAI can be used as a quick way to move stolen funds, which could attract more regulatory attention if such incidents increase. (Source)
2. Sky Proposes Issuing Hyperliquid’s USDH Stablecoin (September 9, 2025)
What happened: Sky, the project formerly known as MakerDAO, proposed to issue USDH, a stablecoin from Hyperliquid. They plan to provide $2.2 billion in liquidity through their Peg Stability Module and offer a 4.85% yield to users. Additionally, Sky is setting up a $25 million fund to help grow Hyperliquid’s decentralized finance (DeFi) ecosystem.
Why it matters: By using DAI’s existing infrastructure, Sky aims to expand its presence across multiple blockchains and increase DAI’s use in financial products like derivatives. However, this move also highlights the growing competition among stablecoins, which could lead to fragmentation in the market. (Source)
3. Bitverse Lists MKR Highlighting DAI’s Role (September 5, 2025)
What happened: Bitverse’s new perpetual decentralized exchange (PerpDEX) listed MKR, now rebranded as Sky. The platform emphasizes DAI’s importance as the first decentralized stablecoin and offers traders up to 10 times leverage on MKR with no slippage.
Why it matters: Although DAI itself isn’t traded on Bitverse, this listing reinforces DAI’s foundational role in the DeFi space. Growth in Sky’s ecosystem could indirectly support demand for DAI. (Source)
Conclusion
DAI remains a key player in decentralized finance, balancing new innovations like Sky’s USDH proposal, ongoing liquidity needs highlighted by recent hacks, and its established presence through platforms like Bitverse. However, security challenges and increasing regulatory scrutiny pose risks. The big question is whether DAI’s decentralized design can handle these pressures while continuing to grow across different blockchains.
What is expected in the development of DAI?
Dai’s development is moving forward with these key updates:
- Delayed Upgrade Penalty (September 18, 2025) – A 1% quarterly penalty on MKR-to-SKY token conversions after the deadline.
- Governance Module V2 (Q4 2025) – Updates to make voting more decentralized and reduce the influence of liquid staking tokens (LSTs).
- Ecosystem Stars Expansion (2026) – Growth of specialized subDAOs focused on real-world assets (RWA) and deeper integration of DAI and USDS.
In-Depth Look
1. Delayed Upgrade Penalty (September 18, 2025)
What’s happening:
MakerDAO rebranded to Sky Protocol in August 2024, switching MKR tokens to new SKY tokens at a rate of 1:24,000. If holders don’t convert their MKR by September 18, 2025, they will face a 1% penalty every quarter on the unconverted tokens (Blockworks).
Why it matters:
This change mainly affects MKR and SKY token holders involved in governance and doesn’t directly impact Dai. However, if many delay the switch, it could shift focus away from maintaining Dai’s stability toward managing token changes.
2. Governance Module V2 (Q4 2025)
What’s happening:
The upcoming upgrade aims to spread voting power more evenly by adding staking lockups and limiting the influence of liquid staking tokens (LSTs). This comes after concerns about too much control being held by a few, including co-founder Rune Christensen (S&P Global).
Why it matters:
If successful, this will strengthen Dai by making the system more resilient and better aligned with regulatory expectations. However, low voter participation—only about 9% of SKY tokens voted recently—could limit the effectiveness of these changes.
3. Ecosystem Stars Expansion (2026)
What’s happening:
Sky Protocol plans to grow its “Stars” program, which integrates DAI and USDS into specialized subDAOs like Spark (focused on lending) and pools backed by real-world assets (RWA). A $25 million investment in Spark has already helped generate $390 million in total value locked (TVL) (Blockworks).
Why it matters:
This expansion could help stabilize Dai’s value by diversifying the types of assets backing it—currently, 35% of collateral comes from RWAs. However, it also introduces risks related to counterparties and depends on clear regulations, especially in Europe under MiCA.
Conclusion
Dai’s roadmap carefully balances the need to complete token migration with important governance and ecosystem improvements. While USDS adoption is slower than expected, Dai’s market cap rebound to $5.36 billion (CoinMarketCap) shows it remains a key player. The big question is whether Sky Protocol’s focus on vertical integration can address concerns about centralized governance.
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.