Ethereum Stablecoin DAI Has Returned to Its Highly Sought Dollar Value

The ethereum-based stablecoin DAI looks to be maintaining a steady dollar valuation.

For the past few days, DAI across four different cryptocurrency exchanges has been exchanging above the dollar level and is worth exactly $1 at press time.

There is an estimated 87 million DAI presently in circulation, according to blockchain analytics site Alethio, and an estimated $300 million worth of ether locked in the MakerDAO system that supports the token's value.

To this, David Hoffman - COO of cryptocurrency real estate platform RealTPlatform - reaffirmed in a community call Tuesday that discussions over the DAI dollar peg could soon be moving into "a new phase."

"The last three months has been how do we get DAI back to a dollar and now it's looking like DAI is strongly above 99 cents," Hoffman said during the call.

"That brings into relevancy a bunch of new questions like how close to a dollar should we have? What is an acceptable bound to be around a dollarHow long do we want DAI to be around 99 cents to a dollar before we claim that the peg is fixed?".

Utrobin also highlighted on Tuesday that the present supply of DAI has contracted from an all-time high of 96 million DAI in circulation.

There have been eight consecutive fee hikes in the past four months to programmatic lending protocol MakerDAO which issues DAI tokens in exchange for native ethereum cryptocurrency, ether.

Today, Vishesh Choudhry of the MakerDAO Foundation's Risk Team reaffirmed on a governance and risk call that "The most clear and measurable impact of the Stability Fee increases" has been contracting DAI supply.

On the other hand, Svanevik suspects that both the recent controversy surrounding dollar stablecoin Tether and the attractive DAI interest rates on cryptocurrency lending platforms such as Compound have caused a higher influx of demand for DAI. Whether or not the current upward trend for DAI price will last beyond a few short days remains to be seen.