MakerDAO DAI‘s stablecoin supply increased by $200 million after its interest rate increased by 8% for holders depositing into the protocol.

On Aug. 6, MakerDAO’s founder Rune Christensen revealed that Dai Savings Rate (DSR) was paying the high yield rate for the stablecoin holders “at no additional risk.”

Following the news, DAI’s market cap climbed to $4.66 billion from $4.45 billion during the last 24 hours, according to CryptoSlate’s data. Additionally, the number of the decentralized stablecoins in the DSR contract soared to 611 million from 339.4 million recorded on Aug. 6, according to the Makerburn dashboard.

The Stablecoin Supply Ratio (SSR) is a vital market indicator that has been steadily climbing since the start of the year, signifying a decrease in the purchasing power of stablecoins.

The SSR is a metric that provides insight into the supply and demand dynamics between Bitcoin (BTC) and the U.S. dollar. The calculation of SSR involves dividing the total supply of stablecoins by the market capitalization of Bitcoin.

When the SSR is low, it indicates that the buying power of stablecoins is high. This means that for each dollar represented by stablecoins, there is a larger portion of Bitcoin’s market cap available for purchase.

On the other hand, a high SSR suggests that the buying power of stablecoins is low. In this scenario, each dollar represented by stablecoins can buy a smaller portion of Bitcoin’s market cap.

During a relatively stable second quarter, Bitcoin and Ethereum have expanded their shares to over 70% of the total cryptocurrency market capitalization for the first time since April 2021