Dai stablecoin supply surged by over 618% in Q3 amid yield farming

• DeFi shot up Dai stablecoin market to almost $1 billion.
• USDC and Dai made a list as the most-used stablecoins in the DeFi market.

The decentralized finance (DeFi) protocols and the general market, noted mind-blowing records during the third quarter of the year. The uptrend in the industry has been related to the recent yield farming frenzy, which birthed several million-dollar projects. For the same cause, popular stablecoins, especially Dai, gained a massive increase in the supply to a total valuation of nearly $1 billion.

Dai stablecoin demand surged in DeFi

As shared by Messari, a cryptocurrency market data aggregator, the Dai stablecoin gained massive demand within the past four months. This resulted in the cryptocurrency trading a little above the $1 price level. Overall, the MakerDAO’s stablecoin supply surged past 618 percent in the third quarter of the year. Messari largely related the increase in Dai to the decentralized finance activities. 

To name a few, Messari noted that the growth of Dai stablecoin was propelled by the recent liquidity mining programs launched by popular DeFi protocols like Compound, Yearn Finance, Curve, Uniswap, etc. As a result, a significant percentage of the stablecoin’s total supply (about 65 percent) is currently locked in DeFi projects for the purpose of yield farming. 

USDC and Dai outperforms USDT in DeFi

The Dai stablecoin is an ERC-20 token which is minted whenever users deposit Ether (ETH) in the DeFi protocol, MakerDAO. Currently, the stablecoin is trading at $1.01 on Coinmarketcap. Dai has a market capitalization of $915,274,461, from the circulating supply of 907,927,217 DAI. As of July, the stablecoin had a market cap of about $130 million.

Following this record, Dai is considered as the second most-used stablecoin in the decentralized finance market. As Cryptopolitan reported, USD Coin (USDC) dominates in DeFi as the largest stablecoin locked, followed by Dai. Nonetheless, Tether (USDT) still claims the largest share amid its market capitalization.