DAI volume rises! DAI volume rises in the new year, and the rise is evident in the blockchain records. Yes, we know that blockchain volume can be manipulated, but it’s much more difficult and more expensive to fake than on an exchange. Is this a sign of some life in the market?
Transfer volumes fell last summer, but November saw a record breaking $2.5 billion in transfers using DAI.
Following November, December saw significant volume as well, with $1.4 billion transferred, along with one day marking $170 million transferred. All of this data comes from the blockchain record, not exchange data.
The big question being asked now is whether there’s a correlation between DAI volumes and Ethereum and other cryptocurrencies prices. Ethereum is the big question, as DAI is created by locking ETH which can either be sold or can be unlocked by returning the created DAI based on price action.
If more ETH is locked, one would think that more would opt for not straight up selling it and instead hope that DAI’s price action doesn’t go against them.
This becomes more clear when you see that DAI can be used as a leveraged margin long when you lock ETH, get DAI, buy more ETH with that DAI, and rinse and repeat depending on how much risk you want to expose yourself to.
What do you think? Let us know on our Facebook page if you trade DAI and are going long on ETH!