{"id":310774,"date":"2023-03-20T22:03:42","date_gmt":"2023-03-20T22:03:42","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=310774"},"modified":"2023-03-20T22:03:42","modified_gmt":"2023-03-20T22:03:42","slug":"dai-supply-has-fallen-by-13-this-week","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/dai-supply-has-fallen-by-13-this-week\/","title":{"rendered":"DAI supply has fallen by 13% this week"},"content":{"rendered":"<p>In the past week, MakerDAO has experienced a drop in total value locked (TVL), the supply of DAI, and annualized fee income, signaling some potential trouble for one of the world's largest stablecoin issuers.<\/p>\n<p>Additionally, MKR's value decreased by 25% during the same timeframe. Despite DAI's recent return to parity with the US dollar, there is growing uncertainty about whether it will remain pegged, causing a decline in MakerDAO's TVL over the last seven days.<\/p>\n<p>On-chain data suggests that MakerDAO's decrease in asset value can be traced back to a reduction in collateralized loans on the platform. This drop in loans appears to be driven by concerns about the sustainability of the DAI stablecoin, which in the past week has seen a 13% decline in supply, per Marker Burn data.<\/p>\n<figure id=\"attachment_310776\" aria-describedby=\"caption-attachment-310776\" style=\"width: 1066px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-310776 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-20-at-8.58.09-PM.png\" alt=\"DAI Supply\" width=\"1066\" height=\"690\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-20-at-8.58.09-PM.png 1066w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-20-at-8.58.09-PM-300x194.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-20-at-8.58.09-PM-1024x663.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-20-at-8.58.09-PM-768x497.png 768w\" sizes=\"(max-width: 1066px) 100vw, 1066px\" \/><figcaption id=\"caption-attachment-310776\" class=\"wp-caption-text\">(Source: MakerBurn.com)<\/figcaption><\/figure>\n<h2>Downward pressure on DAI<\/h2>\n<p>As a result, the supply of DAI also decreased, with Maker Burn data showing a 13% drop since March 13. Currently, the supply of DAI stablecoin is at 5.6 billion tokens. When the supply of DAI declines, it indicates a decrease in circulation, possibly due to a reduction in demand as observed in the past week, or due to a flight into other crypto assets, such as Bitcoin and Ethereum, both have which have <a href=\"https:\/\/cryptoslate.com\/bitcoin-spikes-to-9-month-high-as-central-banks-increase-liquidity-to-mitigate-banking-crisis\/\">surged<\/a> in the past week.<\/p>\n<h2>What this potentially means for MakerDAO annualized income spreads<\/h2>\n<p>The decrease in DAI's supply over the past week has led to a decline in MakerDAO's annualized fee income. MakerDAO generates income through fees when users open a Collateralized Debt Position (CDP) and generate DAI, which is then paid in MKR tokens.<\/p>\n<p>As the stability fee is paid in DAI and converted to MKR, a decrease in DAI supply can lead to a reduction in stability fees and, subsequently, a decline in the amount of MKR tokens distributed as fee income. Maker Burn data indicates that since the collapse of Silicon Valley Bank, MakerDAO's annualized fee income has decreased by 10%.<\/p>\n<figure id=\"attachment_310777\" aria-describedby=\"caption-attachment-310777\" style=\"width: 2560px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-310777 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-20-at-07.16.26.png\" alt=\"DAI Revenue and Profit\" width=\"2560\" height=\"938\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-20-at-07.16.26.png 2560w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-20-at-07.16.26-300x110.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-20-at-07.16.26-1024x375.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-20-at-07.16.26-768x281.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-20-at-07.16.26-1536x563.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/Screenshot-2023-03-20-at-07.16.26-2048x750.png 2048w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><figcaption id=\"caption-attachment-310777\" class=\"wp-caption-text\">(Source: Maker Burn)<\/figcaption><\/figure>\n<h2>As DAI and other stablecoins decrease, Tether increases<\/h2>\n<p>According to data from CryptoSlate, Tether's USDT supply has reached 74 billion for the first time since May 2022.<\/p>\n<p>Over the last month, Tether's supply has increased by approximately 5 billion due to regulatory scrutiny and banking issues faced by its stablecoin competitors, such as BUSD and USDC.<\/p>\n<p>In contrast, USDC, BUSD, and DAI supplies have decreased this year, while USDT's supply has grown by 10%, with USDT's market dominance <a href=\"https:\/\/cryptoslate.com\/tethers-circulating-supply-reaches-10-month-high-of-74b\/\">reaching<\/a> 56.4% last week, its highest point since July 2021.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the past week, MakerDAO has experienced a drop in total value locked (TVL), the supply of DAI, and annualized fee income, signaling some potential trouble for one of the world&#8217;s largest stablecoin issuers. Additionally, MKR&#8217;s value decreased by 25% during the same timeframe. Despite DAI&#8217;s recent return to parity with the US dollar, there [&hellip;]<\/p>\n","protected":false},"author":1406,"featured_media":306191,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,32631],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>DAI supply has fallen by 13% this week<\/title>\n<meta name=\"description\" content=\"The sharp drop in demand has been followed by an uptick in demand for other stablecoins, like USDT.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/dai-supply-has-fallen-by-13-this-week\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DAI supply has fallen by 13% this week\" \/>\n<meta property=\"og:description\" content=\"The sharp drop in demand has been followed by an uptick in demand for other stablecoins, like USDT.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/dai-supply-has-fallen-by-13-this-week\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-03-20T22:03:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/03\/dai.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Dorian Batycka\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Dorian Batycka\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/dai-supply-has-fallen-by-13-this-week\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/dai-supply-has-fallen-by-13-this-week\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/dorian-batycka\/#person\",\"name\":\"Dorian Batycka\",\"url\":\"https:\/\/cryptoslate.com\/author\/dorian-batycka\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/dorian-batycka\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/dorian-batycka\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/dorian-author-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/dorian-author-300x300.jpg\",\"caption\":\"Dorian Batycka\"},\"jobTitle\":\"Contributor\",\"description\":\"Dorian Batycka is a journalist interested in art and technology. 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