DAI Historical Price and Returns Analysis: Should I Buy DAI Now?

Abstract

This article provides a comprehensive review of DAI’s historical price movements and market volatility since its inception, analyzing both bull and bear market cycles. By examining the potential returns from purchasing 10 DAI tokens across different market periods, this analysis addresses the critical question: “Should I buy DAI now?” to help both novice and long-term investors identify optimal entry points and growth opportunities.

Early Market Cycles and Price Foundation: Historical Overview (2017 to 2020)

DAI, developed and managed by MakerDAO, represents the largest decentralized stablecoin on Ethereum and serves as critical infrastructure for decentralized finance (DeFi). According to available data, DAI’s early trading price was approximately $1.0 starting from 2017.

The following outlines DAI’s price performance during its early market cycles:

2017

• Opening Price: $1.0
• Closing Price: $0.9779
• Highest Price: $1.0
• Lowest Price: $0.9779
• Annual Return: -2.21%

2018

• Opening Price: $0.9751
• Closing Price: $0.99
• Highest Price: $1.03
• Lowest Price: $0.964
• Annual Return: 1.53%

2019

• Opening Price: $0.9701
• Closing Price: $0.998
• Highest Price: $1.03
• Lowest Price: $0.9423
• Annual Return: 2.88%

2020

• Opening Price: $1.0
• Closing Price: $1.0
• Highest Price: $1.04
• Lowest Price: $0.993
• Annual Return: 0.03%

An investor who purchased 10 DAI tokens during the early market phase in 2017 would have achieved potential cumulative returns of $0.0049 by current valuation.

Mid-Term Cycles: Stability and Consolidation (2021 to 2023)

During this period, DAI’s price remained remarkably stable, reflecting its design as a stablecoin pegged to the US dollar. The market demonstrated strong resilience with minimal volatility.

The following presents potential returns for investors purchasing 10 DAI tokens during this consolidation phase:

• 2021: -$0.026
• 2022: $0.0049
• 2023: $0.0339

2021

• Opening Price: $1.0
• Closing Price: $1.0
• Highest Price: $1.0
• Lowest Price: $0.9928
• Annual Return: -0.3%

2022

• Opening Price: $1.0
• Closing Price: $0.9992
• Highest Price: $1.0
• Lowest Price: $0.9974
• Annual Return: -0.08%

2023

• Opening Price: $0.9971
• Closing Price: $0.9967
• Highest Price: $1.0
• Lowest Price: $0.9833
• Annual Return: -0.04%

Recent Market Cycles: Should I Buy DAI Now? (2024 to 2025)

In recent periods, DAI has demonstrated modest positive momentum, with price movements remaining tightly bound to its dollar peg while showing subtle appreciation tendencies.

2024

• Opening Price: $0.9944
• Closing Price: $1.0
• Highest Price: $1.0
• Lowest Price: $0.9944
• Annual Return: 0.6%

2025

• Opening Price: $0.9999
• Closing Price: $1.0
• Highest Price: $1.0
• Lowest Price: $0.9975
• Annual Return: 0.06%

Investors purchasing 10 DAI tokens during this recent period would see potential returns as follows:

• 2024: $0.0609
• 2025 (to date): $0.0059

Conclusion: Market Cycles and Investment Timing Assessment

Through comprehensive analysis of DAI’s historical price performance and potential returns since 2017, we observe that DAI has maintained exceptional price stability as a collateral-backed decentralized stablecoin. While its design prioritizes stability over volatility-driven gains, DAI continues to serve as foundational infrastructure for DeFi ecosystems. The data suggests that DAI represents a low-risk allocation strategy for investors seeking stability rather than speculative returns, answering the question “Should I buy DAI now?” with a framework focused on risk management and DeFi participation rather than capital appreciation.