- The stablecoin market cap increased by 4.76% to $158 billion.
- DAI Increases Ethereum Stablecoin Trading Volume
Despite the broader cryptocurrency market experiencing a recent downturn, Ethereum (ETH) has shown resilience not only in market performance but also in the stablecoin sector.
In recent weeks, Bitcoin has risen slightly, while Ethereum has also risen slightly.
In particular, Ethereum saw a significant surge in stablecoin trading volume, mainly driven by DAI, a decentralized stablecoin.
This surge highlights the growing reliance on stablecoins during periods of market volatility.
April was a record-breaking month for Ethereum stablecoin transactions, surpassing all previous records.
The total volume of stablecoins traded on the network has seen unprecedented growth, with DAI playing a pivotal role.
Source: The Block
This surge in activity is due to the use of complex transactions involving Mechanized Extractable Value (MEV) and flash loans. It is becoming increasingly popular due to its ability to maximize trading efficiency and liquidity.
DAI: The Catalyst for Ethereum’s Record Volume
DAI’s participation in sophisticated financial strategies has significantly contributed to the increase in trading volume.
These deals often utilize flash loans (short-term unsecured loans that are returned within the same transaction), boosting reported volume figures.
For example, as shown in the picture EtherscanJust one transaction injected nearly $1 billion into DAI’s volume, demonstrating the scale and impact of these operations.
During the month, DAI’s trading volume reached approximately $636 billion, accounting for most of Ethereum’s total stablecoin trading volume of $1.2 trillion in April.
This is a more than three-fold increase from March, showing the growing importance of DAI within the Ethereum ecosystem.
In particular, DAI’s surge in transaction volume reflects not simply increased usage, but the increasing sophistication and integration of blockchain financial technologies.
Meaning of stablecoin growth
This increase in stablecoin activity has important implications.
Although the numbers may be inflated when flash loan transactions are included in volume calculations, the underlying trends indicate robust activity and adoption.
Moreover, the growing supply of DAI (approximately $1 billion worth of tokens added since early March) reflects growing demand and confidence in the stablecoin as a hedge against market volatility.
Source: The Block
In particular, as stablecoin trading volume continued to increase, especially DAI, the overall market capitalization of stablecoins also increased in April.
According to AMBCrypto: recent reportsStablecoins showed remarkable growth in April, recording growth for the seventh consecutive month, contrary to the general market downturn.
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The sector’s market capitalization increased 4.76% to $158 billion, with a significant increase in annual current value of $27.1 billion.
According to the CCData report, this growth first occurred during a market retreat due to rising inflation and increasing geopolitical tensions, particularly in the United States.