New Study Reveals Best Stablecoin, Why DAI Took The Crown

The Maker protocol native decentralized stablecoin DAI could become a leader in this sector over the next years. Best Brokers published research that found the digital asset to have been the most stable over the past nine months.

The stablecoin digital asset is one whose currency is linked to the U.S. dollars in an 1:1 parity. The concept is controversial in the crypto industry, as some of the most popular and valuable stablecoins have de-pegged and become unstable at some point except for those tokens considered “too centralized” by the community.

For years users searched for a stablecoin that was decentralized. After the collapse of Terra’s ecosystem, DAI could take its place as the biggest stablecoins Tether and USD Coin.

ETH’s price moving sideways on the 4-hour chart. Source: View the ETHUSDT Tradingview

DAI Is More Stable than Any Other Stablecoin

Dune Analytics data was used to analyze popular stablecoins BUSD and DAI as well as LUSD, USDC and USDT. FRAX had the lowest price deviation in the nine months to date, as per the research.

DAI was stable for 95.73% of the periods. USDC was stable for 99.72%. LUSD showed the greatest instability, with a deviation of 0.5% from its $1 peg during 53% (9-month) period.

DAI and BUSD were the most stablecoins studied. They never deviated lower than $0.995 and $1.005 respectively. The chart below shows that Tether (USDT), the largest stablecoin, had the highest percentage of price deviation in the last 9 months with 0.78%.

DAI Ethereum ETH ETHUSDT Chart 1
Source: BestBrokers

DAI topped the list for the lowest deviation percentage to its peg. In the nine months that were analyzed by the study, the decentralized stablecoin was 0.5% off its usual value.

DAI thus is the most stable stablecoin with a deviation of $0.99640185 from the U.S. Dollar’s 1:1 value. USDC follows closely in second with a deviation $0.9962163333333. Tether had the lowest performance, with $0.97 deviation. See the chart below.

DAI Ethereum ETH ETHUSDT Chart 2
Source: BestBrokers

Alan Goldberg, market analyst at BestBroker, stated the following on their results, and DAI’s potential to attract institutions purely based on its stability:

DAI’s stability is considerable. A lot of corporate adopters would prefer having assets that aren’t volatile as they already have to deal with competition, inflation, market conditions, etc. DAI can be compared to USDC by keeping this in mind.

Since the fall of TerraUSDT and LUNA, stablecoins are a hot topic in crypto. The demand for stablecoins remains strong, with DAI set to gain more relevance in the sector. Goldberg said:

Although the DAI’s supply is low, compared to USDC, USDT and BUSD, it is still sizeable and makes it usable by big companies. When we consider both the low deviation and the most stable price, DAI can be considered as the most stable coin for the last 9 months and a serious contender to compete with the other ‘big’ stablecoins.

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