Ethereum

Token

Maker

Basic Attention Token

USDC

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 <p class="is-style-lead">In crypto, stablecoins such as Tether (USDT) and DAI vie for dominance. Tether recently hit a noteworthy milestone with an $87.54 billion <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a> cap. However, some argue that decentralized tokens like DAI offer superior <a rel="noopener noreferrer nofollow" title="Category Features" href="https://thebittimes.com/features.html">Features</a>.&nbsp;</p>
 <p>This article delves into the critical distinctions between them.</p>
 <h2 class="wp-block-heading" id="tether-overview-and-market-performance">Tether: overview and market performance</h2>
 <p>Tether, the oldest and largest stablecoin, aims to provide crypto as reliable as traditional fiat currencies like the USD, leveraging blockchain technology.&nbsp;</p>
 <p>Its stability is maintained by pegging each USDT token to $1, backed by Tether’s reserves.</p>
 <p>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;</p>
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 <p>This incident briefly led to USDT depegging to $0.95, prompting concerns about stablecoin volatility and calls for increased transparency regarding Tether’s reserves.</p>
 <h2 class="wp-block-heading" id="dai-the-decentralized-challenger">DAI: the decentralized challenger</h2>
 <p>DAI, a stablecoin designed to maintain a steady value close to the USD, addresses the common issue of crypto volatility.&nbsp;</p>
 <p>Operated by&nbsp;MakerDAO, a decentralized entity, DAI ensures stable value through regulating its supply.&nbsp;</p>
 <p>Maker (MKR)&nbsp;holders can participate in MakerDAO’s decision-making process, lending a democratic aspect to its governance​​.</p>
 <p>DAI is regulated by MakerDAO, which holds a range of cryptocurrencies like Ethereum (ETH), Bitcoin (BTC), Basic Attention Token (BAT), and USDC as reserve assets. These assets function as collateral, against which new DAI are issued as debt.&nbsp;</p>
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 <p>This process of collateralization is integral to maintaining DAI’s stability.&nbsp;</p>
 <p>DAI can be acquired by purchasing it on the open <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a> or depositing supported collateral assets with MakerDAO and receiving DAI as a loan against this collateral.</p>
 <h2 class="wp-block-heading" id="is-dai-better-than-usdt">Is DAI better than USDT?&nbsp;</h2>
 <p>The choice between DAI and Tether depends on individual preferences for decentralization, transparency, and use cases:&nbsp;</p>
 <ul>
  <li><strong>Issuance and regulation</strong>: 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><strong>Use Cases and flexibility</strong>: 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><strong>Transparency and trust</strong>: 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://thebittimes.com/image/getimage/?url=https://lh7-us.googleusercontent.com/S7ogtGdoH5qyYUo46raOBH1UtgknUBabir9FhdhoCFweC5J1H-A6cmI_JzirEYZDswCcl2AW8DuygzRcqqog-SBzhDXeCWllnqfivACI_hUPfNuXmHq8w3fPyAyYl9-vrOAnFhfe5GM9-wrivMR0PvQ" alt="USDT reaches $85b market cap, is DAI better? - 1">
 </figure>
 <p>USDT and DAI preserve funds, while projects like&nbsp;Meme Moguls, on the other hand, can offer gains.&nbsp;</p>
 <p>Meme Moguls, which plans to launch a meme-backed stock <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a>/exchange, combines crypto trading with meme culture.&nbsp;</p>
 <p>It <a rel="noopener noreferrer nofollow" title="Category Features" href="https://thebittimes.com/features.html">Features</a> a wealth leaderboard, staking pool, and community engagement and aims to enhance user experience.</p>
 <p>With an initial price of $0.0019 and a smaller <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a> cap than established tokens like Bitcoin (BTC) and Ethereum (ETH), Meme Moguls’ MGLS, supporters assert, has more growth potential. Accordingly, investors can explore.</p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/usdt-reaches-85b-market-cap-is-dai-better-tbt71347.html">https://thebittimes.com/usdt-reaches-85b-market-cap-is-dai-better-tbt71347.html</a></p>

USDT reaches $85b market cap, is DAI better?

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