What could affect the price of DAI?
Dai’s $1 value peg is facing complex challenges from changes in decentralized finance (DeFi), new regulations, and competition.
- Shifts in DeFi Demand – Growth in crypto lending could increase Dai’s use, but competition for better yields is a concern.
- Regulatory Risks – U.S. policy discussions may remove special rules for decentralized stablecoins like Dai.
- Collateral Volatility – Price swings in Ethereum (ETH), which backs much of Dai, could lead to forced sales and test Dai’s safety margin.
Deep Dive
1. DeFi Adoption & Yield Dynamics (Mixed Impact)
Overview:
Dai is widely used in DeFi lending, which reached a record $73.59 billion in the third quarter of 2025 (Galaxy Research). However, newer platforms like Aave on Plasma and Pendle’s yield strategies are attracting some users away from Dai.
What this means:
While more money flowing into DeFi could boost Dai’s usefulness, other stablecoins offering higher interest rates (for example, USDS at 4.5% compared to Dai’s 1.5% Dai Savings Rate) might reduce Dai’s market share.
2. Regulatory Uncertainty (Bearish Risk)
Overview:
Andreessen Horowitz is advocating for an exemption under the GENIUS Act to protect decentralized stablecoins, highlighting ongoing regulatory uncertainty (CoinMarketCap). Without clear rules, compliance costs could increase and limit institutional interest.
What this means:
If regulators classify decentralized stablecoins like Dai as securities, it could restrict liquidity providers and exchanges, reducing demand for Dai.
3. Collateral Health & ETH Correlation (Bearish Catalyst)
Overview:
About 60% of Dai’s backing comes from Ethereum (ETH). If ETH’s price drops sharply—say below $2,500—it could trigger widespread forced sales of collateral, temporarily destabilizing Dai’s $1 peg.
What this means:
Dai’s requirement to keep collateral at least 150% of its value offers some protection. However, in a severe market crash, mass liquidations could force emergency measures and damage confidence in Dai.
Conclusion
Dai’s stability depends on the strength of DeFi, favorable regulations, and steady ETH prices. While its peg system is solid, external risks like regulatory crackdowns or competition from centralized stablecoins (USDC, USDT) could challenge its position. Key question: Will the Sky Protocol rebrand and USDS integration bring new investment or cause fragmentation in Maker’s ecosystem?
What are people saying about DAI?
DAI’s position as a stablecoin remains strong despite some high-profile transactions and its leading role in decentralized finance (DeFi). Here’s the key info:
- Hackers are using DAI for large Ethereum (ETH) purchases
- DAI ranks as the third-largest stablecoin by market value
- Polygon network adoption of DAI hits new records
In-Depth Look
1. Coinbase Hacker’s $45M DAI Holdings – Neutral Impact
According to @OnchainLens, a hacker linked to Coinbase bought 4,863 ETH using $12.5 million worth of DAI at a price of $2,569 per ETH and currently holds $45.36 million in DAI across multiple wallets.
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What this means: This is neutral for DAI. The stablecoin’s strong liquidity and price stability make it suitable for large transactions, even if some come from illicit sources. However, this doesn’t affect DAI’s core value or stability.
2. DAI’s DeFi Leadership Confirmed – Positive Outlook
@WhisprNews reports that as of November 3, 2025, DAI ranks fourth among the top DeFi assets by market capitalization.
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What this means: This is a positive sign. DAI’s strong position shows that users trust its decentralized collateral system, helping it stand out among other stablecoins.
3. Polygon Network’s Stablecoin Growth – Positive Outlook
@TokenRelations notes that Polygon has set new all-time highs in the number of stablecoin addresses for USDC, USDT, and DAI for the third week in a row.
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What this means: This is good news for DAI. Increasing use on Polygon shows that DAI is becoming more useful across different blockchain networks, especially for payments and DeFi applications.
Conclusion
Overall, the outlook for DAI is positive. It remains one of the top three stablecoins and is growing its presence in DeFi. While some high-profile hacker activity shows that DAI is widely used for transactions, this doesn’t harm its stability. Keep an eye on DAI’s circulating supply (currently $5.36 billion) as it can indicate changes in demand, especially with ongoing Ethereum market fluctuations.
What is the latest news about DAI?
DAI is navigating the growth of decentralized finance (DeFi) and changing regulations while large investors continue to accumulate. Here’s the latest update:
- Sky Savings TVL Surpasses $4 Billion (Nov 12, 2025) – Deposits of USDS and DAI jump 60% in one month.
- a16z Requests GENIUS Act Exemption (Nov 12, 2025) – Supports decentralized stablecoins like DAI.
- Crypto Lending Hits $73.6 Billion Record (Nov 20, 2025) – DAI holds 16% of the on-chain collateralized debt position (CDP) market.
In-Depth Look
1. Sky Savings TVL Surpasses $4 Billion (Nov 12, 2025)
Summary:
Sky Savings, formerly known as MakerDAO, saw its total value locked (TVL) rise to $4 billion. This growth was fueled by a 60% increase in deposits of USDS and DAI over the past month. USDS makes up 91% of the TVL and offers an annual percentage yield (APY) of 4.5%, compared to DAI’s 1.25%. The platform has grown 150% year-to-date, showing renewed trust in Sky’s DeFi services after its rebranding.
What this means:
This growth shows strong interest from both institutions and everyday investors looking for steady returns in a stable environment. DAI’s lower yield suggests it’s mainly used as a reliable source of liquidity rather than a high-yield investment. (The Defiant)
2. a16z Requests GENIUS Act Exemption (Nov 12, 2025)
Summary:
Andreessen Horowitz (a16z), a major venture capital firm, asked the U.S. Treasury to exempt decentralized stablecoins like DAI from the GENIUS Act. This law would require stablecoins to disclose reserves and obtain licenses, which could limit innovation in DeFi. a16z argues that decentralized coins don’t have a central issuer, so these rules shouldn’t apply.
What this means:
If a16z succeeds, DAI can keep its decentralized governance without major changes. If not, DAI might have to adjust its protocol, which could affect its resistance to censorship and control. (CoinMarketCap)
3. Crypto Lending Hits $73.6 Billion Record (Nov 20, 2025)
Summary:
Crypto-backed lending reached a new high of $73.6 billion in the third quarter of 2025. DAI accounts for 16% of on-chain CDP activity. Decentralized lending platforms now control 55.7% of the market, helped by strategies like points farming and better collateral options such as Pendle tokens.
What this means:
DAI’s share of CDPs shows its important role in leveraged borrowing strategies. However, it faces competition from stablecoins like USDS that offer higher yields, which could challenge DAI’s market position. (Galaxy Research via Coinspeaker)
Conclusion
DAI’s growth in total value locked and ongoing regulatory efforts demonstrate its strength in the competitive DeFi space. While USDS attracts more speculative investments, DAI remains a decentralized foundation. The key question is whether DAI can maintain stability while adapting to new real-world asset demands. Keep an eye on lending trends and GENIUS Act updates in the coming months.
What is expected in the development of DAI?
Dai’s development is focused on improving governance and expanding its ecosystem.
- Governance Module V2 (2025) – Simplifies voting and allows delegation of voting power.
- FRAX Integration (Q1 2026) – Combines Dai with the Frax stablecoin for shared collateral.
- MetaDAO Expansion (2026) – Creates specialized subDAOs for real-world assets and decentralized finance.
Deep Dive
1. Governance Module V2 (2025)
Overview
MakerDAO is updating its governance system to make voting easier and introduce delegation. This means token holders can let others vote on their behalf without giving up control of their tokens (Blockworks). The update also separates decision-making powers to improve clarity and efficiency.
What this means
This change could help Dai become more decentralized and scalable by encouraging more participation. However, there is a risk that too much voting power could end up concentrated in the hands of a few delegates.
2. FRAX Integration (Q1 2026)
Overview
A new proposal connects Dai’s stability system with Frax, another stablecoin, allowing them to share liquidity and collateral across platforms (Sky Protocol).
What this means
This integration could make Dai more useful across different blockchain networks and DeFi applications. On the downside, combining two different models adds complexity and could face challenges during market stress.
3. MetaDAO Expansion (2026)
Overview
MakerDAO plans to launch “Stars,” a group of specialized subDAOs focused on specific areas like real-world asset collateral (Spark) and cross-chain liquidity (Skybridge) (Blockworks). This modular approach aims to manage risks and foster innovation.
What this means
This expansion could help Dai grow by supporting new use cases more quickly. However, coordinating governance across multiple subDAOs is untested and could be challenging.
Conclusion
Dai’s roadmap through 2026 focuses on making governance more efficient, improving interoperability, and diversifying its ecosystem. While features like FRAX integration and MetaDAOs offer exciting opportunities, success depends on carefully balancing decentralization with operational complexity. Will delegated governance change MakerDAO’s community-driven spirit as it grows?
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 I expect to have relevant details soon. Meanwhile, please feel free to choose another question or cryptocurrency for analysis.