cryptonewsz.com
In the last few months, there has been a noticeable boost in the number of stablecoin transactions on the Ethereum blockchain compared to other months. This surge was most noticeable in April when it broke its all-time activity record. Flash loans, typically excluded from financial data, contributed significantly to the transaction surge.
Despite filtered stablecoin volume falling marginally below March’s level, FDUSD had its best month on record despite the absence of flash loan activity, which contributed to a respectable month for stablecoin volume.
April’s outstanding performance has pushed DAI, a stablecoin, into the spotlight. Based on the data from The Block, MEV is the most significant factor in complicated transactions. These sorts of financing often utilize a flash loan mechanism, which temporarily produces huge sums of DAI and returns at the same time. A recent deal on this model revealed exceptional DAI coin trading for almost $1 billion.
In April, trading volume for the stablecoin DAI, one of the most popular on the Ethereum blockchain, reached $636 billion. This was the major indicator contributing to the total on-chain volume of almost $1.2 trillion for all Ethereum-based stablecoins that same month. It is also worth noting that the volume of DAI in April more than tripled its level in March.
In addition to its staggering trading volume, DAI has also experienced a significant increase in supply. In just over one month, the DAI value of newly issued liquid coins has reached over one billion US dollars, and its total supply has reached about 5.44 billion. This significant growth serves as evidence of DAI’s growing role in the stablecoin market, and it has now established itself as one of the most prominent stablecoins, with this period demonstrating such.
May is a decisive month for DAI as its progress in its expansion and evolution continues. According to MakerBurn, the amount of DAI has increased from $220 million in the last month. On the other hand, Ethena could face pressure from other players, creating USDe and a stable coin from Ripple, disrupting the competition in the stablecoin market.
Notwithstanding the surge in DAI volumes, the Maker (MKR) token, issued by MakerDAO, the entity facilitating DAI, experienced a substantial decline in value throughout the month of April, culminating in a marginal surge at the start of May. The divergence between DAI usage and the governance token’s performance highlights the complexities of the cryptocurrency market, where consumption and value may not move in tandem. As these events unfold, investors and market players anticipate the outcome of DAI stability and its ripple effects on the entire financial framework.