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In crypto, stablecoins such as Tether (USDT) and DAI vie for dominance. Tether recently hit a noteworthy milestone with an $87.54 billion market cap. However, some argue that decentralized tokens like DAI offer superior features.&nbsp; 
This article delves into the critical distinctions between them. 
<h2 class="wp-block-heading" id="tether-overview-and-market-performance">Tether: overview and market performance</h2> 
Tether, the oldest and largest stablecoin, aims to provide crypto as reliable as traditional fiat currencies like the USD, leveraging blockchain technology.&nbsp; 
Its stability is maintained by pegging each USDT token to $1, backed by Tether’s reserves. 
However, Tether faced a stability test in May 2022 when the collapse of another stablecoin, TerraUSD (UST), triggered a substantial redemption of over $10 billion USDT.&nbsp; 
 You might also like: <a href="https://crypto.news/tether-whale-received-1-1b-usdt-since-october-buoying-bullish-speculation/"> Tether whale received $1.1b USDT since October, buoying bullish speculation </a> 
This incident briefly led to USDT depegging to $0.95, prompting concerns about stablecoin volatility and calls for increased transparency regarding Tether’s reserves. 
<h2 class="wp-block-heading" id="dai-the-decentralized-challenger">DAI: the decentralized challenger</h2> 
<a href="https://coinmarketcap.com/currencies/multi-collateral-dai/" target="_blank" rel="noreferrer noopener">DAI</a>, a stablecoin designed to maintain a steady value close to the USD, addresses the common issue of crypto volatility.&nbsp; 
Operated by&nbsp;<a target="_blank" href="https://makerdao.com/" rel="noreferrer noopener">MakerDAO</a>, a decentralized entity, DAI ensures stable value through regulating its supply.&nbsp; 
<a target="_blank" href="https://coinmarketcap.com/currencies/maker/" rel="noreferrer noopener">Maker (MKR)</a>&nbsp;holders can participate in MakerDAO’s decision-making process, lending a democratic aspect to its governance​​. 
DAI is regulated by MakerDAO, which holds a range of cryptocurrencies like Ethereum (ETH), Bitcoin (BTC), Basic Attention Token (<a href="https://crypto.news/basic-attention-token-to-implement-kyc-free-on-chain-payouts/" data-type="post" data-id="14181740">BAT</a>), and USDC as reserve assets. These assets function as collateral, against which new DAI are issued as debt.&nbsp; 
 You might also like: <a href="https://crypto.news/ethereum-co-founder-vitalik-buterin-exits-makerdao-position/"> Ethereum co-founder Vitalik Buterin exits MakerDAO position </a> 
This process of collateralization is integral to maintaining DAI’s stability.&nbsp; 
DAI can be acquired by purchasing it on the open market or depositing supported collateral assets with MakerDAO and receiving DAI as a loan against this collateral. 
<h2 class="wp-block-heading" id="is-dai-better-than-usdt">Is DAI better than USDT?&nbsp;</h2> 
The choice between DAI and Tether depends on individual preferences for decentralization, transparency, and use cases:&nbsp; 
<ul> 
 <li>Issuance and regulation: USDT is issued by a single entity and requires users to undergo know-your-customer (KYC) procedures. However, DAI allows individuals to create a new coin by depositing crypto with MakerDAO.</li> 
 <li>Use Cases and flexibility: DAI’s decentralized model offers use cases like hedging against market volatility and facilitating instant crypto transfers. USDT’s centralized model assures users the ability to redeem tokens for fiat currency​​​​.</li> 
 <li>Transparency and trust: Tether has faced scrutiny and calls for more transparency regarding its reserves, especially following market events that affected its stability. DAI’s operations through a decentralized autonomous organization (DAO) are seen as aligning more closely with the ethos of crypto, appealing to those who favor decentralization​​​​.</li> 
</ul> 
<h2 class="wp-block-heading" id="exploring-a-new-token">Exploring a new token</h2> 
<figure class="wp-block-image">
 <img decoding="async" src="https://lh7-us.googleusercontent.com/S7ogtGdoH5qyYUo46raOBH1UtgknUBabir9FhdhoCFweC5J1H-A6cmI_JzirEYZDswCcl2AW8DuygzRcqqog-SBzhDXeCWllnqfivACI_hUPfNuXmHq8w3fPyAyYl9-vrOAnFhfe5GM9-wrivMR0PvQ" alt="USDT reaches $85b market cap, is DAI better? - 36">
</figure> 
USDT and DAI preserve funds, while projects like&nbsp;<a target="_blank" href="https://pr.mememoguls.com/1ac3g5" rel="noreferrer noopener">Meme Moguls</a>, on the other hand, can offer gains.&nbsp; 
Meme Moguls, which plans to launch a meme-backed stock market/exchange, combines crypto trading with meme culture.&nbsp; 
It features a wealth leaderboard, staking pool, and community engagement and aims to enhance user experience. 
With an initial price of $0.0019 and a smaller market cap than established tokens like Bitcoin (BTC) and Ethereum (ETH), Meme Moguls’ MGLS, supporters assert, has more growth potential. Accordingly, investors can explore. 
 Read more: <a href="https://crypto.news/bitcoin-leading-crypto-charge-analysts-upbeat-on-polkadot-and-meme-moguls-in-2024/"> Bitcoin leading crypto charge, analysts upbeat on Polkadot and Meme Moguls in 2024 </a> 
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USDT reaches $85b market cap, is DAI better?

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