This week’s DeFi frenzy has been all about non-fungible tokens (NFTs) and digital art. Recent findings have indicated that the Dai stablecoin is at the center of it all.
The monumental surge in MEME prices and influencer shilling of SHROOM has catalyzed the latest DeFi fad consisting of NFTs and crypto collectibles. In essence, a non‑fungible token is a special standard of a token on Ethereum which creates verifiable digital scarcity.
A report by MakerDAO has revealed how the Dai stablecoin has become a popular asset in the digital art world due to its stability and global transferability.
Dai For Digital Art
Several platforms and artists have adopted NFTs and integrated Dai to boost innovation in the art market, the report added. One of the largest marketplaces for crypto art and collectibles is OpenSea which has been using Dai to price higher-value assets where fluctuations in prices of other cryptocurrencies would be impractical.
Async is another platform that allows users to create, sell, buy, collect, and trade artwork — with the revolutionary difference in that it’s programmable. This means that layers can be coded into the work as add-ons from buyers. Co-founder, Lisa Liang, also touted Dai as their stablecoin of choice, adding that top artists prefer stablecoins.
Crypto-powered digital collectible platform Foundation offers a marketplace for artists to monetize their work. It enables smart contracts for artists to receive their target price for the NFT, plus any commissions on resale. Founder Kayvon Tehranian said, “We love how Dai is open, transparent, and fair—values that deeply align with the cultural space.”
The report cites a couple more examples of how Dai is dominating the digital art world, and CEO of the Maker Foundation, Rune Christensen, added that Dai has become a perfect match for artists;
“The trustless, transparent, and secure nature of Dai gives artists and patrons from across the globe space to focus on the art, rather than the logistical realities of moving money from account to account.”
DeFi and Crypto Art Craze
Dai issuance rates have increased this year under heavy demand from the DeFi and crypto art scene. Since the end of June, when the DeFi farming frenzy really started to accelerate, the Dai market cap has skyrocketed almost 600% from $130 million to $900 million.
Meanwhile, Maker has retaken the top spot on the DeFi charts as total value locked surges to $1.9 billion according to DeFi Pulse.