How to evaluate demand for DAI: supply, volume, and use
You can evaluate demand for DAI by tracking supply, market cap, volume, and use in DeFi apps, not price, and by recording each figure with its date.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
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This guide gives you a repeatable way to judge whether people are actually using DAI with public data.
What do I need before starting?
DAI is a stablecoin that aims to hold a value near one US dollar. Sky, formerly MakerDAO, issues it, and crypto collateral, stablecoins, and real-world assets back it. Data sites publish supply and market cap, and block explorers show activity on each chain where DAI runs.
How do I evaluate DAI demand?
Demand for a stablecoin shows in how much of it exists, how much changes hands, and how much sits inside DeFi apps. Price is a weak signal, since DAI can trade at its peg with little real use. Work through the checks below in order.
- 1Track supply and market capCompare total supply and market cap with earlier dates on a data site. DAI launched in 2017, so long charts cover several market cycles.
- 2Count on-chain activityUse block explorers to follow active addresses, transfers, and holder growth. DAI runs on more than one chain, so check each one.
- 3Compare with USDT and USDCCompare DAI's share of stablecoin supply and trading volume with USDT and USDC, which have usually held the largest shares since 2020. Wash trading can inflate exchange volume, so weigh it against on-chain transfers.
- 4Check use in DeFi appsLook at how much DAI sits in lending markets and liquidity pools and how often it backs loans. Use inside these apps points to real demand.
What should I do after the steps?
After the checks, keep a record so your next round is comparable. A figure without a date is hard to compare, so recheck the same measures on a schedule you can keep.
Frequently asked questions
Sky uses incentives and arbitrage to pull the price back toward one dollar. When DAI trades below the peg, the Peg Stability Module and loan repayments can shrink supply; above it, borrowing and conversions can add supply.
A sharp drop in the value of its collateral can trigger liquidations and leave bad debt. A contract failure, a liquidity crunch, or a loss of confidence can also push DAI off the peg.
No. Exchange volume can include wash trading and incentive-driven trading, so weigh it against on-chain transfers and supply changes.
USDC is issued by Circle and backed mostly by cash and government debt, so its supply follows the issuer's mint and burn decisions. DAI is issued by Sky and backed by crypto collateral, stablecoins, and real-world assets, so its supply follows borrowing and the Peg Stability Module.
