Firstly if you use the Spotify or Deezer streaming service, make sure you set the data rate to 320 kb / s – the highest resolution.
Secondly, of course, DAC will do this but, nevertheless, the number one component that affects quality is currently speakers or headphones. It is they who introduce the greatest amount of distortion into the reproduced sound, with which the other components cannot even be compared. And these same components have evolved the least, and there is nowhere to evolve particularly.
The speakers as a whole should have several speakers – one for the mid-range and one for the high. It is advisable to have a subwoofer for low frequencies, since no speaker, even the highest quality, can replace it. If possible, it makes sense to have two subwoofers instead of one, but this is already chic.
Also, speakers should be massive and heavy. The fact that it is light and compact most likely does not sound very good, and there are purely physical reasons for this.
Unfortunately, the quality of the speakers often directly depends on their cost. Although the price does not matter at all in the same category, columns of a higher category are almost always better than speakers of a lower category.
Summary
If Spotify is your main source, I can’t see the point in spending a lot on a DAC, but if you have other sources, then a better DAC is going to benefit everything. Without an indication of how much you are thinking of spending and the context of your system, it’s hard to give advice.