Two of the top stablecoins in the crypto industry today are USDT and DAI. Both cryptocurrencies are pegged to the U.S. dollar making them not experience volatility like other crypto assets.
The cryptocurrency industry has witnessed a major downturn in prices in 2022. Terra’s collapse, as well as inflation, has contributed to the turmoil. Despite this averse risk takers are still investing in crypto assets. Investors still have USDT in their wallets as well as DAI.
USDT and DAI are top stablecoins but which is being considered most by crypto investors? This we will check out in this post. Before then, let’s know about both crypto assets.
What is USDT?
USDT is a blockchain-based cryptocurrency that is backed by the U.S dollar and issued by the Tether company. USDT is the trading symbol for Tether tokens pegged to the USD. There are also Tether tokens pegged to other fiat currencies.
USDT is the most popular form of altcoins called ”Stablecoins” because its value is pegged to the U.S dollar. In simple terms, a U.S Tether token is $1 all time.
USDT like every other stablecoin is protected from the price fluctuation of cryptocurrencies. This property makes USDT a haven for crypto investors.
Investors can park their portfolios in Tether without having to completely cash out into USD during periods of high volatility.
What is DAI?
DAI is an Ethereum-based stablecoin that is pegged to the U.S. dollar. It is issued and developed by the Maker Protocol and the MakerDAO decentralized autonomous organization. This means that the company runs itself in a decentralized manner via the use of smart contracts.
It is collateralized by a mix of other cryptocurrencies that are deposited into smart-contracts vaults every time a new DAI is minted.
It is important to know that there is Multi-Collateral DAI and Single-Collateral DAI (SAI). The Multi-Collateral DAI was launched in November 2019. The founder of MakerDAO is Danish entrepreneur Rune Christensen, who began work on the ecosystem in 2015.
USDT in the Crypto Market Today
The crypto market has been bearish for most of this year. Bitcoin, the largest cryptocurrency, and other altcoins have witnessed a fall in price, nearing their all-time lows. However, stablecoins like USDT have been largely unaffected.
As expected, the price of USDT is $1.00 with a 24-hour trading volume of $53,942,295,700. Tether’s USDT is the third largest cryptocurrency today. It has a market cap of $67,958,042,614 USD. It has a circulating supply of 67,954,703,168 USDT coins.
USDT is available for purchase on exchanges as well as trading platforms worldwide.
DAI in the Crypto Market Today
DAI as a stablecoin pegged to the USD is also expected to always have a price of $1. It has a 24-hour trading volume of $286,483,683.
DAI is nine places below USDT as the number 12 ranked cryptocurrency. It has a live market cap of $6,938,293,491. It also has a circulating supply of 6,937,015,633 DAI coins.
The stablecoin is available for purchase on several crypto exchanges which include OKX, ByBit, Deepcoin, MEXC, etc.
USDT vs DAI- What Makes Them Unique?
USDT and DAI have things in common yet they are still different. They are both stablecoins pegged to the USD and have the same price always. Investors, therefore, need to know what makes them unique when investing.
USDT is backed by traditional assets such as treasury bills, commercial paper, fiduciary deposits, and so on. DAI on its own is a collateral-based cryptocurrency soft-pegged to the U.S. dollar. Users can’t borrow and lock its collateral.
They are both unique in their blockchains. For this obvious reason, USDT and DAI functions are different from each other.
USDT vs DAI- Which are Investors Considering in 2022?
Investors diversifying their portfolios choose their options based on several factors which include their needs. USDT is however the biggest and most popular of the two stablecoins.
USDT’s market capitalization today is $69.7 billion while the market cap of 12th ranked DAI is $6.9 billion. This shows that USDT is the most preferred option between the two stablecoins.
DAI is the second largest decentralized stablecoin by market cap after it was flipped recently by Terra UST. Investors who make its decentralization an option have also considered it.
The fact is that Tether’s USDT has been in the industry for many years and has passed the test of time. This makes it an industry giant, following Bitcoin and Ethereum.
USDT is therefore the top stablecoin crypto investors are considering today. No wonder, it’s the leading stablecoin today.
Where to Trade USDT in Nigeria
USDT as stated earlier can be purchased on many exchanges and trading platforms worldwide. If you are in Nigeria, the best place to sell USDT is Prestmit. Here, you will get the best rate to sell your USDT.
If you are in Nigeria or Ghana, you can have access to USDT and change to the Nigerian Naira or Ghanaian Cedis using the Prestmit App. When you register on this platform, it is very easy to trade top crypto assets like BTC, LTC, USDT, and DOGE as well as gift cards.
The Bottom Line
USDT and DAI are among the stablecoins you can get today. Although they have many things in common, they are still unique in their way.
USDT is however top on investors’ list in 222. The Tether-issued token which can also be seen in other fiat currencies is the 3rd largest cryptocurrency today following BTC & ETH closely in the crypto market.