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DAI Pushes the Ethereum's Stablecoin Volume to Record Highs in April

DAI dominates the stablecoin transactions volume on the Ethereum blockchain

April marked a record-setting month for Ethereum stablecoins, with DAI leading the surge in transaction volumes amid increasing use in sophisticated financial maneuvers.

Key takeaways:

  • DAI's significant transaction volume contributed to a record-breaking April for Ethereum stablecoins.
  • Despite the inclusion of flash loan activity, underlying stablecoin demand remains strong.

Ethereum’s stablecoin ecosystem, total monthly transaction volumes have consistently risen over the past three months, reaching a record-breaking high in April. While part of this volume includes flash loan activities, the substantial figures underscore a renewed vibrancy in stablecoin transactions on the platform. Even excluding flash loan impacts, stablecoins such as FDUSD experienced their best month yet, although the adjusted volume was slightly below that of March.

DAI dominates with record transactions

A major contributor to this uptick was DAI, which not only dominated Ethereum’s stablecoin landscape but also set remarkable records in usage. In April, DAI’s transaction volume soared to $636 billion, accounting for the majority of Ethereum's total stablecoin volume, which nearly hit $1.2 trillion. This volume represents a more than threefold increase from DAI's March figures. The substantial rise in DAI's use, particularly in complex Maximum Extractable Value (MEV) transactions involving flash loans, played a crucial role. In one notable instance, nearly one billion dollars worth of DAI was minted and then returned within a single transaction, dramatically inflating the month's total.

DAI's supply has also expanded significantly, growing by approximately one billion dollars since early March to a current total of 5.44 billion. The surge in both supply and transaction volume indicates robust demand and utilization. As we move into May, DAI has already seen an additional increase of $220 million in supply, according to MakerBurn, suggesting continued growth. However, emerging competitors like Ethena’s USDe and Ripple’s anticipated stablecoin may introduce new challenges for DAI's market position in the coming months.

Despite these positive volume trends, the price of Maker (MKR), the governance token associated with DAI's supporting organization MakerDAO, experienced a general decline throughout April.