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- Ethereum witnessed a record-breaking month for stablecoin volume in April.
- Stablecoin DAI accounted for the majority of the on-chain volume.
- One notable transaction involving DAI added almost $1 billion in volume alone.
Ethereum, the world’s leading smart contract blockchain network, witnessed a surge in stablecoin volume in April, reaching unprecedented levels, according to recent data. This surge, however, also includes flash loan activity, which significantly boosted the figures.
The total monthly stablecoin volume on Ethereum has been steadily rising for the past three months, marking a departure from months of relatively flat activity. The surge in April was particularly noteworthy, breaking previous records.
As per TheBlock’s data, stablecoin DAI, played a significant role in driving this surge, recording a volume of $636 billion in April alone. DAI’s volume accounted for the majority of the total on-chain volume for Ethereum stablecoins, which amounted to nearly $1.2 trillion for the month.
This surge in DAI volume can be attributed to its increasing use in complex Miner Extractable Value (MEV) transactions, often involving flash loans. MEV transactions are complex transactions that exploit the order in which transactions are processed on Ethereum to extract value, and DAI has become a popular choice for such transactions.
One notable transaction involving DAI added almost one billion dollars of volume alone. This increased activity contributed to DAI’s supply growth, which added around one billion dollars worth of tokens since March 7, reaching a total current supply of 5.44 billion.
While other stablecoins also saw an increase in volume, DAI managed to slightly increase its share of the total stablecoin supply over the same period.
May is shaping up to be another significant month for DAI, with its supply already increasing by $220 million since the beginning of the month, according to MakerBurn. However, DAI could face challenges from competitors like Ethena’s USDe and Ripple’s upcoming stablecoin, which may impact its supply in the future.
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