What could affect the price of DAI?
DAI’s stability is being challenged by competition for better yields, changing regulations, and updates in how it’s managed.
- Regulatory Pressure – The U.S. GENIUS Act bans stablecoins that pay interest, limiting DAI’s use in decentralized finance (DeFi).
- Yield Competition – Alternatives like Ethena’s USDe offer much higher returns (10.86% APY) compared to DAI’s 1.5% savings rate, reducing demand for DAI.
- Rebranding Risks – Moving from DAI to Sky Protocol’s USDS token could confuse users and split liquidity.
Deep Dive
1. Regulatory Crackdowns (Negative to Mixed Impact)
Overview: The U.S. GENIUS Act, passed in July 2025, bans stablecoins that pay interest, forcing DAI to shut down its Dai Savings Rate (DSR) in regulated U.S. markets. Some platforms like Coinbase are offering “rewards” as a workaround. Meanwhile, Hong Kong’s new Stablecoin Ordinance requires full identity checks (KYC) for tokens pegged to HKD or RMB, making it harder to move DAI across borders.
What this means: Because DAI is decentralized, it avoids outright bans but faces limits on growth where yield is important. Complying with these rules could also shift MakerDAO’s focus from innovation to legal compliance.
2. Yield Wars & Synthetic Alternatives (Negative Impact)
Overview: Ethena’s USDe, with a market cap of $9.49 billion, offers high yields of 10.86% through strategies that balance ETH and BTC exposure. Sky Protocol’s USDS, which is meant to replace DAI, offers a lower 4.75% yield. DAI’s 1.5% DSR looks less attractive, especially since Circle’s USDC now offers over 5% returns by investing in traditional finance bonds.
What this means: Investors are moving their money to higher-yield options, reducing demand for DAI. Data also shows DAI’s price is less stable during market downturns compared to USDe.
3. Governance & Protocol Upgrades (Mixed Impact)
Overview: Sky Protocol is rebranding MakerDAO by introducing SKY tokens (replacing MKR) and launching USDS as an upgraded version of DAI. However, this transition risks splitting the community and liquidity. For example, $45.36 million worth of DAI held by a hacker on Coinbase could flood the market if converted to USDS.
What this means: If the migration goes smoothly, it could improve governance and attract institutional investors. But delays or technical problems might cause instability. The credit rating agency S&P gave Sky a B- rating, indicating some ongoing trust concerns.
Conclusion
DAI’s value depends on balancing its decentralized design with competitive yields and adapting to new regulations. While its $5.4 billion market cap is smaller than USDT and USDC, there remains demand for stablecoins that resist censorship. Keep an eye on how quickly users adopt USDS after the migration—will DeFi projects switch to the new token or stick with the original DAI?
What are people saying about DAI?
DAI is making headlines in the world of cryptocurrency and decentralized finance (DeFi). Here’s the latest:
- Hackers are using DAI to launder Ethereum (ETH) purchases
- The Ethereum Foundation is converting ETH into DAI
- DAI remains the third-largest stablecoin by market value
In-Depth Look
1. @Onchain Lens: Coinbase hacker’s $45M DAI stash mixed
“🚨 A hacker stole funds from a Coinbase user, then bought 4,863 ETH using $12.5 million in DAI at $2,569 per ETH. The hacker still holds $45.36 million in DAI.”
– @Onchain Lens (8.3K followers · 12K impressions · 2025-07-07 09:06 UTC)
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What this means: Opinions are mixed. DAI’s high liquidity makes it easy to move large amounts quickly, but its use in money laundering could attract regulatory attention.
2. @Wendy: Ethereum Foundation’s DAI pivot neutral
“An Ethereum Foundation-linked wallet sold 6,194 ETH for $28.36 million in DAI at an average price of $4,578 per ETH. They are preparing for more sales with incoming ETH.”
– @Wendy (6.1K followers · 8.7K impressions · 2025-08-15 02:01 UTC)
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What this means: This is a routine treasury move. Using DAI shows confidence in its stability, but if the Foundation keeps selling ETH, it could put downward pressure on ETH’s price.
3. @Stablecoin Pulse: DAI’s market dominance bullish
“The top three stablecoins are USDT, USDC, and DAI. This $250 billion+ market connects traditional finance with crypto liquidity.”
– @Stablecoin Pulse (4.8K followers · 9.2K impressions · 2025-08-13 11:01 UTC)
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What this means: Positive outlook. With a market cap of $5.36 billion and decentralized governance, DAI is a key player in DeFi.
Conclusion
The overall view on DAI is mixed. It’s a useful tool for big financial moves and a favorite in the Ethereum ecosystem, but its involvement in illicit activities raises concerns. Keep an eye on ETH/DAI trading volumes—they reveal how much trust big investors have in DAI’s price stability. Also, watch for potential regulatory actions targeting stablecoins linked to hacking incidents.
What is the latest news about DAI?
Dai is navigating a complex landscape involving hackers, large investors, and competition in earning yields. Here are the key updates:
- Radiant Hacker Launders $10.8M Using DAI (October 23, 2025) – Stolen funds were converted into DAI before being mixed through Tornado Cash.
- Richard Heart Moves $611M in ETH Connected to DAI (October 20, 2025) – Large DAI holdings raise questions about market stability.
- DAI vs. Ethena USDe: A Growing Yield Competition (October 14, 2025) – Decentralized stability faces off against synthetic yield strategies.
In-Depth Look
1. Radiant Hacker Launders $10.8M Using DAI (October 23, 2025)
What happened: A hacker who exploited Radiant Capital converted about 2,834 ETH (worth roughly $10.8 million) into DAI before sending it through Tornado Cash, a service that mixes cryptocurrency to hide its origin. The attacker originally stole $53 million in 2024, increased it to $94 million through trading, and held 35.29 million DAI before laundering the funds.
Why it matters: This shows how DAI is used to obscure stolen funds after hacks. Because DAI is stable and liquid, it’s a preferred choice for moving large amounts—even in illegal activities. This could lead to increased regulatory attention. (crypto.news)
2. Richard Heart Moves $611M in ETH Connected to DAI (October 20, 2025)
What happened: Richard Heart, known for founding Hex, transferred 154,000 ETH (about $611 million) between wallets. These movements are linked to a large DAI purchase of 499 million made in March 2023. The transfers suggest he might be rebalancing his portfolio or preparing for major sales.
Why it matters: Large investors (“whales”) using DAI highlight its importance for big transactions. However, sudden large conversions between DAI and ETH could affect DAI’s price stability if liquidity isn’t balanced. (Binance News)
3. DAI vs. Ethena USDe: A Growing Yield Competition (October 14, 2025)
What happened: DAI offers a 1.5% savings rate, which is lower than Ethena USDe’s 5.5% yield. However, DAI bounced back faster from a recent market drop, regaining its peg in 30 minutes compared to USDe’s 1 hour. DAI’s approach relies on overcollateralization and decentralized governance, while USDe uses delta-neutral strategies to generate yield.
Why it matters: DAI appeals to users who prioritize stability and security, while competitors like USDe attract those seeking higher returns. Clearer regulations on algorithmic stablecoins could influence which model gains more traction. (Yahoo Finance)
Conclusion
DAI continues to be a key player in decentralized finance, balancing its goal of stability with challenges from hacking incidents, large investor moves, and competition in yield offerings. As regulators focus more on privacy tools and synthetic assets, DAI’s transparent governance and stability may help it maintain its position—or the market could shift toward higher-yield alternatives.
What is expected in the development of DAI?
Dai’s roadmap is focused on growing its ecosystem, improving governance, and connecting with other blockchains.
- USDS Integration (2025–2026) – Dai will transition to USDS, a new stablecoin managed by Sky Protocol.
- Governance Restructuring (2025–2027) – Changes include new staking rules and protections against certain risks.
- Ecosystem Stars (2025–2026) – USDS will be used in new decentralized finance (DeFi) projects like Spark.
Deep Dive
1. USDS Integration (2025–2026)
Overview
MakerDAO is rebranding as Sky Protocol and upgrading Dai to USDS, a new stablecoin with better governance and earning features (Bitverse). USDS will still be pegged 1:1 to the US dollar but will offer flexible savings rates (around 4.75%) and work across multiple blockchains.
What this means
This upgrade could increase liquidity and make it easier for institutions to use USDS. However, Dai holders will face a small penalty (1% loss every three months after September 2025) if they don’t switch to USDS, encouraging migration.
2. Governance Restructuring (2025–2027)
Overview
Sky Protocol plans to replace the MKR token with SKY tokens at a fixed exchange rate (1 MKR = 24,000 SKY) and create a “Core Council” to speed up decisions (Blockworks). New staking rules will require users to lock their tokens to reduce short-term speculation and support long-term growth.
What this means
These changes aim to make governance more decentralized and efficient. While this may not directly affect price, it could improve the protocol’s stability. There are risks like low voter participation and regulatory challenges, especially with laws like Hong Kong’s Stablecoin Ordinance.
3. Ecosystem Stars (2025–2026)
Overview
Sky is investing $390 million into key projects called “Stars,” such as Spark, a lending platform that will use USDS as a primary funding source (CoinJar). These projects will help USDS expand into real-world assets and financial derivatives.
What this means
If these projects attract institutional investors, it could boost USDS adoption. However, USDS will face strong competition from established stablecoins like Tether and USDC in the DeFi space.
Conclusion
Dai’s transformation into USDS under Sky Protocol focuses on scaling up and meeting institutional standards. Success will depend on how smoothly users migrate and how well new DeFi projects perform. The big question is whether Sky’s integrated approach can compete with the liquidity advantages of centralized stablecoins.
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.