If the crypto market shows extreme volatility, that’s when investing in stablecoins like DAI can help to protect your portfolio. Once those turbulent times pass, it’s time to figure out which currency to acquire next.
You might be wondering whether a DAI to FTM swap is the best move, and we are trying to answer that in our guide. Keep reading to learn more details about Fantom and why converting DAI stablecoins to this asset is a good idea!
Understanding DAI and FTM
Potential value changes are important, and that’s why reading insights like the Jasmy coin price forecast is a wise investment move. Before proceeding to price changes, don’t forget to cover the basics and understand the currencies in your portfolio. Here’s more information regarding DAI and FTM.
DAI Overview
DAI is a stablecoin that uses the USD dollar as its peg. It belongs to algorithmic stablecoins, which means it utilizes a smart contract protocol to maintain its $1 value. The soft pegging to USD means that the currency doesn’t hold actual US dollars in reserves. Instead, it uses a combination of other cryptocurrencies, which it keeps in secure vaults.
MakerDAO is behind the DAI token and its history goes back to 2015. It’s a decentralized autonomous organization that utilizes smart contracts to run in a democratic way. MKR token holders have voting rights on the platform.
FTM Overview
Fantom offers an alternative to Ethereum that implements smart contracts but has a different network structure. It uses directed acyclic graph infrastructure, but offers similar services to Ethereum, including the option to build and use decentralized apps.
The platform features a layer-1 blockchain and it was released in 2019. Fantom utilizes the Lachesis consensus protocol, which is an aBFT algorithm. The idea is to create a secure network that would have maximum scalability and transaction speed.
Fantom’s ecosystem now has over 250 projects. Some biggest names are decentralized exchanges like WigoSwap and lending platforms, such as Tarot. FTM token owners can stake their coins to earn interest.
Reasons to Swap DAI for FTM
You have some DAI coins in your wallet and wondering if you should convert them to FTM. Here’s why you should proceed with that now:
- The potential to earn from FTM price changes. If you estimated that Fantom could gain value soon, that could secure some profit from investing in it.
- Expanding your investment portfolio. Adding the FTM crypto to your portfolio might be a great way to diversify it.
- Take advantage of its other use cases. FTM coins grant you governance rights and unlock access to other uses, such as staking the tokens and earning interest.
Now, let’s say you are in a different situation and wondering why to convert FTM to DAI. These are reasons to acquire stablecoins:
- Minimize unwanted risks at times of volatility. If you believe it’s hard to predict the market and don’t want to give up on your crypto investment, stablecoins are your haven during tricky times.
- International transfers of fiat-backed crypto. Some regulations might prevent you or it’s taking days to make an international transaction. You can use stablecoins pegged to the desired currency and send them to anyone in another country via crypto wallets.
- Decentralized transactions of fiat-backed cryptos. The digital payment market doesn’t require an intermediary like fiat currencies.
Market Trends for DAI and FTM
Here’s a quick insight into the current DAI and FTM market trends:
- Current trends. DAI does show slight volatility, but its value doesn’t go under $0.997 or $1.02. FTM is now worth around $0.45, which is a downfall from the last month.
- Historical performance. FTM was worth $0.299 a year ago, meaning the transaction has had a positive long-term trend. DAI had the most problems in the first half of 2023 when it went as low as $0.89.
- Market sentiment. The current CFGI index for FTM is 36%, putting it in the Fear category. However, it also indicates that now might be the time to acquire this coin since the price might go up soon.
Key Takeaways: Insights From the DAI to FTM Swap
Things change quickly in the crypto market. That’s why checking the relevant indicators and using reliable tools is vital when deciding if you should go ahead with the DAI to FTM conversion. The good news is that many exchanges support this swap, so it shouldn’t be a problem to find a reliable platform to execute the transaction quickly and effortlessly.
