Throughout 2019 and 2020, MKR has made modest gains in USD, BTC, and ETH markets, but all pairs remain largely range-bound based on historic price action.

Initially, ETH was the only collateral accepted for backing Dai. In November 2019, MKR introduced a multi-collateral asset. The original single-collateral asset, backed by ETH, was renamed Sai, while the new multi-collateral asset assumed the previous name, Dai.

On-chain metrics suggest increasing use of the stable coin despite a currently capped supply of US$100 million.

On-chain metrics suggest increasing use of the stable coin despite a decreasing circulating supply.

Dai may also be poised to become the stablecoin of choice for ETH users, for a variety of reasons. An upcoming Coinbase listing, the potential for ICOs denominated in Dai, payroll sent in Dai, and dApps like Augur using Dai, all point to the need for Dai or something similar in the future.

The true test of the stability of a stable coin comes with fluctuations in market volatility.

MKR and its DAI comprise a complex stable coin system which brings transparency, auditability, stability mechanisms, fallback procedures, and scalability to the stable coin universe. Despite several sharp drops in ETH since January, DAI has been remarkably stable throughout the tumultuous volatility.