What could affect the price of DAI?
DAI’s dollar peg faces complex challenges from regulation, competition, and how its system works.
- Regulatory Changes – U.S. and EU rules may require stricter compliance for decentralized stablecoins like DAI (Blockworks)
- Competition for Returns – Other stablecoins like USDe and USDS offer higher interest rates, making DAI less attractive (Yahoo Finance)
- Collateral Risks – Since DAI is backed by volatile assets like ETH, big price drops can trigger forced sales and affect its stability (Maker Whitepaper)
In-Depth Look
1. Regulatory Scrutiny (Mixed Effects)
What’s happening: New laws like the U.S. GENIUS Act (2025) and the EU’s MiCA framework are pushing for more transparency and reserves, which tends to favor centralized stablecoins. DAI’s decentralized setup means no single issuer controls it, but this could also mean it’s left out of some regulated markets. MakerDAO’s rebranding to “Sky Protocol” in 2024 was an attempt to meet these rules, but it received a “B-” credit rating from S&P due to concerns about governance centralization (Blockworks).
What it means for you: Stricter regulations might limit big institutions from using DAI, but its decentralized nature could attract users looking for alternatives during times of crisis or heavy regulation.
2. Competition from Synthetic Stablecoins (Pressure on DAI)
What’s happening: Stablecoins like Ethena’s USDe, which has a market cap of $12.26 billion, use advanced strategies to offer higher returns—about 19% in 2024 compared to DAI’s 1.5% savings rate. MakerDAO’s upgrade to USDS, which allowed a 1:1 swap with DAI, hasn’t helped regain market share. DAI’s supply has stayed around $5 billion (Yahoo Finance).
What it means for you: Without improving yields or adding new types of collateral (like tokenized real-world assets), DAI risks falling behind as investors chase better returns elsewhere.
3. Collateral Volatility and Liquidation Risks (Potential Problems)
What’s happening: About 62% of DAI is backed by volatile assets like ETH and WBTC. If ETH’s price drops by 30%, it could trigger mass liquidations—forced sales of collateral—that temporarily push DAI off its $1 peg, as happened during the October 2025 flash crash when USDe briefly hit $0.9912. MakerDAO requires a 145% minimum collateral ratio, which is less protective than some centralized stablecoins (Maker Whitepaper).
What it means for you: Sudden market crashes could force emergency measures or dilute DAI holders, challenging the stablecoin’s reliability and user trust.
Conclusion
DAI’s future depends on finding the right balance between staying decentralized, offering competitive returns, and managing collateral risks. While regulatory pressures and competing stablecoins create challenges, MakerDAO’s flexible governance and deep integration with Ethereum give it tools to adapt. The big question: Can MakerDAO’s move toward backing DAI with real-world assets help it win the ongoing battle for stablecoin dominance? Keep an eye on monthly savings rate changes and how much DAI is backed by ETH to gauge its health.
What are people saying about DAI?
DAI’s stability is stirring up conversations and big moves—from hackers moving millions to investors looking for safer options. Here’s what’s happening:
- Hackers are using DAI to launder ETH purchases
- Ethereum Foundation is converting ETH into DAI
- DAI offers stability, while USDe offers higher yields but more risk
Deep Dive
1. @OnchainLens: Coinbase hacker’s $45M DAI stash raises eyebrows
“🚨 A hacker… bought 4,863 ETH for $12.5M DAI… still holds $45.36M DAI”
– @OnchainLens (2.1M followers · 18K impressions · 2025-07-07 09:06 UTC)
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What this means: This is a negative signal for DAI’s reputation since hackers using it in large amounts could attract regulatory attention. However, it also shows that DAI has enough liquidity to handle big transactions smoothly.
2. @EF_Watch: Ethereum Foundation sells $28M worth of ETH for DAI
“Sold 6,194 ETH for $28.36M DAI… likely preparing further sales”
– @EF_Watch (890K followers · 7.2K impressions · 2025-08-13 05:05 UTC)
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What this means: This is neutral for DAI. Institutional players like the Ethereum Foundation use DAI as a stable way to settle transactions. But if ETH sales continue on a large scale, it could put pressure on the assets backing DAI.
3. @0xMoon6626: Comparing DAI’s safety to USDe’s higher yields
“DAI’s 3.24% yield is lower than USDe’s 9%… but DAI is safer during ETH price drops”
– @0xMoon6626 (42K followers · 3.8K impressions · 2025-08-30 08:22 UTC)
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What this means: This is good news for users who prefer less risk. DAI is backed by more collateral (about 145% on average), making it more secure even though it offers lower returns compared to competitors like USDe.
Conclusion
Opinions on DAI are mixed. It’s praised for its proven stability but criticized for offering modest returns as competitors like USDe attract attention with higher yields. Keep an eye on Ethereum’s price changes—a sharp drop in ETH could challenge DAI’s collateral reserves. Also, upcoming European regulations (MiCA) might change how stablecoins are used. The big question remains: Can DAI’s governance find the right balance between safety and competitive earnings?
What is the latest news about DAI?
DAI is navigating new U.S. regulations and increasing competition from synthetic stablecoins. Here’s a quick update:
- GENIUS Act Changes Compliance Rules (Oct 27, 2025) – New U.S. law demands more transparency and bans interest-bearing stablecoins, sparking debates on privacy and innovation.
- Ethena’s USDe Surpasses DAI (Oct 24, 2025) – USDe’s market value hits $12.26 billion, overtaking DAI as the third-largest stablecoin.
- Yield Battle: DAI vs. USDe (Oct 14, 2025) – DAI offers a 1.5% yield, while USDe provides 5.5%, attracting more users.
In-Depth Look
1. GENIUS Act Changes Compliance Rules (Oct 27, 2025)
What happened:
The U.S. passed the GENIUS Act, which bans stablecoins that pay interest. This affects projects like DAI, which rely on protocols offering yields. Although DAI’s decentralized setup helps it avoid direct regulation, the new law requires more transparency about collateral backing the stablecoin.
What it means for DAI:
This is somewhat negative for DAI. While its decentralized nature offers some protection, the ban on interest-bearing stablecoins could slow down its growth in decentralized finance (DeFi). However, new technologies like zero-knowledge proofs (ZKPs) might help DAI comply without sacrificing privacy. (Gate.com)
2. Ethena’s USDe Surpasses DAI (Oct 24, 2025)
What happened:
Ethena’s USDe stablecoin grew rapidly, reaching a $12.26 billion market cap—more than double DAI’s $5.36 billion. USDe uses a synthetic model backed by crypto assets and derivatives, attracting over 32,500 wallets and showing 72% growth in holders.
What it means for DAI:
This is a challenge for DAI’s market share. USDe’s approach, which combines stability with higher yields, appeals to both institutional and retail investors. DAI’s slower adoption of cross-chain liquidity (operating mainly on Ethereum) compared to USDe’s presence on Ethereum and Solana widens the gap. (Coinspeaker)
3. Yield Battle: DAI vs. USDe (Oct 14, 2025)
What happened:
DAI’s Savings Rate offers a 1.5% return, while USDe provides a more attractive 5.5% staking reward. During a market dip in October, DAI maintained its $1 peg better than USDe, but many users prefer USDe’s higher yields despite slightly more risk.
What it means for DAI:
This is a mixed picture. DAI’s stability builds trust, but its lower yield may cause some users to move their funds to USDe. MakerDAO, the organization behind DAI, focuses on safety with overcollateralization (requiring 155% backing), while USDe’s synthetic model targets yield-seeking investors. (Yahoo Finance)
Conclusion
DAI is facing two major challenges: adapting to new U.S. regulations and competing with synthetic stablecoins like USDe. Its decentralized design remains a strong advantage, but lower yields and slower innovation could impact its $5.36 billion market cap. The question is whether MakerDAO will adjust its strategy to include hybrid models to stay competitive.
What is expected in the development of DAI?
Dai’s development is focused on growing its ecosystem and improving how it’s governed.
- Expanding Stablecoins with Hyperliquid (Q4 2025) – Sky Protocol (formerly MakerDAO) plans to launch USDH, a new stablecoin that uses Dai’s liquidity.
- Completing Token Migration (2026) – The switch from MKR to SKY tokens is almost done, with penalties for those who delay.
- Making Governance More Decentralized (2025–2026) – Moving to a “Core Council” system and updating staking rules to prevent centralization.
Deep Dive
1. Expanding Stablecoins with Hyperliquid (Q4 2025)
Overview
Sky Protocol, which used to be called MakerDAO, proposed in September 2025 to issue a new stablecoin called USDH. This stablecoin will be supported by $2.2 billion in liquidity from Dai’s Peg Stability Module. It will connect Dai’s technology to multiple blockchains using LayerZero technology (Blockworks).
What this means
This move could increase Dai’s usefulness by expanding its reach beyond just the Ethereum network, potentially driving more demand for Dai as collateral. On the flip side, USDH might compete with Dai, which could slow down Dai’s own growth.
2. Completing Token Migration (2026)
Overview
The process of swapping MKR tokens for SKY tokens (at a rate of 1 MKR to 24,000 SKY) is almost finished. Starting September 18, 2025, anyone who delays this swap will face a 1% penalty every quarter (CoinJar). The old DAI token is still in use but won’t have access to new features like the Sky Savings Rate.
What this means
This change doesn’t directly affect Dai’s price stability since it mostly impacts governance tokens (SKY). However, if developers shift focus to USDS, it could reduce attention on Dai in the long run.
3. Making Governance More Decentralized (2025–2026)
Overview
Sky Protocol plans to update its governance by 2026, creating a “Core Council” to lead decisions. They will also introduce new staking rules, including lockup periods and restrictions on liquid staking tokens (LSTs), to avoid too much control by a few parties (Blockworks).
What this means
Decentralizing governance is good for Dai’s security and resilience because it reduces the risk of a single point of failure. However, it might slow down decision-making, which could be a problem during urgent market situations.
Conclusion
Dai’s roadmap aims to keep its stability while supporting Sky Protocol’s bigger ecosystem goals. The focus on USDH and governance changes shows a strategy to diversify, but there are risks in how well these plans will be carried out. It remains to be seen if Sky’s move to multiple blockchains will strengthen Dai’s position or speed up its replacement by USDS. Keep an eye on SKY governance votes and how widely USDH is adopted for clearer insights.
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.