Stablecoins are an important part of the current crypto market. They are used for trading, holding value, sending money fast, and also inside DeFi systems. Among many stablecoins, Tether (USDT) and Dai (DAI) are still the two most used options. Both try to stay close to one US dollar, but their approaches and associated risks are very different.
USDT is one of the best stablecoins in the world. ‘s market value is near $187 billion, with very large daily trading volume across almost all crypto exchanges. It is widely used as a trading pair and as a bridge between crypto and fiat currencies.
Dai is much smaller, with a market value close to $4 to $5 billion. Even with this smaller size, Dai still has a strong role inside decentralized finance.
As USDT is so large, it has deep liquidity. Big trades can happen without much price change. Dai liquidity is lower and more common on DeFi platforms than on centralized exchanges.
Read more on Analytics Insight
