The supply of ether to the algorithmic stablecoin DAI has exceeded 40% – Bits Media

The fight between Ether and USDC for dominance as the main reserve currency of the stablecoin DAI ended with a victory for ETH. The level of DAI collateral with USDC stablecoin decreased from 50% until 34.5%.
According to the analytical resource Dai Stats, at the time of publication share of support DAI with ether
grew to 41.4%, and the share of USDC decreased to 34.5%. This indicates a decrease in stablecoin dependence on centralized companies.

USDC stablecoin is managed by the Center consortium, educated by Circle and Coinbase. These companies support the value of the stablecoin, using reserves in US dollars and other financial instruments, pegged to the dollar. In July 2020 year, the consortium froze the Ethereum address, containing stablecoins on $100 000, within the framework of cooperation with law enforcement agencies. Ether is not supported by fiat currency - it is a decentralized cryptocurrency, whose value is determined by the market. It is almost impossible to stop transactions on the Ethereum blockchain.

Previously, the backing of the DAI stablecoin consisted of decentralized assets, such as ether. After the crisis, caused by the pandemic, the stablecoin protocol needed the support of a stable asset. In March 2020 year, the MakerDAO community voted to partially support DAI using USDC. Over time, the share of collateral in USDC has grown, and the decentralized stablecoin actually became centralized. By the end of the year, the DAI stablecoin regained its title as the most decentralized stablecoin.

Towards the end 2020 MakerDAO added LINK, LRC and COMP to ensure DAI stabilization. In April 2021 MakerDAO voted to diversify DAI stablecoin backing.