I'm not exactly sure what you're talking about, because DAI has certainly grown a lot more compared to USDT in terms of popularity and adoption over the past year or so.
People understand that USDT is a dangerous game to play and they can freeze funds at any stage, which is certainly not a great recipe for holders.
They also run fractional reserve which is exactly the reason why crypto was invented in the first place - to get away from the fractional reserve system whose fragility had brought about the GFC.
I would definitely keep away and invest my own cash in more proven decentralized stablecoins.
There is a 100% guarantee that USDT will get lower and lower over course of time and we will have stuff like DAI growing exponentially higher. It is just silly to use "dollars" from a company, it never made any sense and only reason why it became so popular was the fact that exchanges allowed pairs of it. Allow regular dollars, without tether, without any company, no busd, no usdt, no usdc and even gusd, just regular USD and nothing more to be paired and you will get that.
However, in order to avoid legal problems, most major exchanges just used USDT and people are now running away from that because Tether is just a company and why would they trust a company instead of just the decentralized version of it?