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DailyBubble News

Ethereum Stablecoin Volume Skyrockets in April, Fueled by DAI

In April, there was a significant increase in the volume of stablecoins traded on Ethereum, with DAI playing a major role in this growth. This surge in DAI volume can be attributed to its involvement in complex Miner Extractable Value (MEV) transactions, often facilitated by flash loans.

Ethereum’s total monthly stablecoin volume has been steadily increasing for the past three months, reaching a record high in April. It’s important to note that flash loan activity is included in these numbers, contributing to the overall volume.

DAI has been the driving force behind Ethereum’s rising stablecoin volume, particularly through its participation in MEV transactions. One transaction alone added nearly $1 billion in DAI volume, showcasing its importance in the Ethereum ecosystem.

In April, DAI’s volume reached $636 billion, making up the majority of Ethereum’s total stablecoin volume, which reached almost $1.2 trillion for the month. The supply of DAI has also grown significantly, adding around $1 billion worth of tokens since March 7, bringing the total supply to 5.44 billion.

While DAI has been performing well, potential competitors like Ethena’s USDe and Ripple’s upcoming stablecoin could pose challenges to its dominance. However, DAI’s supply has continued to expand, with an additional $220 million added since May 1, according to MakerBurn.

Despite the increase in DAI volumes, the price of Maker, the token associated with MakerDAO, saw a decline in April. However, a slight uptick in early May suggests potential market resilience as DAI becomes more prominent in the stablecoin landscape.

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