MakerDAO hits this crucial milestone; will MKR mirror the sentiment? – Crypto News – Crypto News
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MakerDAO hits this crucial milestone; will MKR mirror the sentiment? MakerDAO hits this crucial milestone; will MKR mirror the sentiment?

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MakerDAO hits this crucial milestone; will MKR mirror the sentiment? – Crypto News

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2 years ago

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  • MKR stood in a positive place as it surged by 2.8% in the last 24 hours.
  • Over the last month, Maker’s TVL recorded a drastic fall of 15.8%.

stablecoin issuers MakerDAO [MKR] achieved a significant milestone recently which was sure to bring cheers to members of the decentralized autonomous organization (DAO).

According to data from makerburnMaker’s annualized fee revenue hit $94.87 million at the time of publication. This was the highest since mid-February 2022.

As indicated in the graph below, the growth has been more pronounced over the last two months with the fee income more than doubling in the same time period. Furthermore, the annual profit estimate went past $60 million.

read Maker’s [MKR] Price Prediction 2023-2024

This could be the ‘why’

according to an analysts From DeFiLlama, the primary reason behind the surge in Maker’s top line and the bottom line was the interest income earned from the US Treasury bonds. These bonds were purchased using the protocol’s Peg Stability Module (PSM) USDC. The PSM enables dai,USDCoin [USDC] swaps at a 1:1 fixed ratio and backs minted DAI with deposited USDC.

It should be recalled that the proposal to increase holdings of US treasury bonds was passed by the DAO members in March. This aim was to diversify Maker’s collateral portfolio. The ecosystem’s crypto-collateralized stablecoin DAI depegged from $1 after its primary collateral USD Coin lost its dollar peg during the March banking crisis.

Currently, Maker’s fee revenue is distributed to MKR tokenholders. These holders use it for funding the protocol’s operational costs and buying and burning MKR tokens to dilute the supply.

Concerns still persist

At the time of writing, Maker had a total value locked (TVL) of %5.77 billion. Furthermore, it was the second-largest DeFi protocol. However, the project was going through a lean patch. Over the last month, the TVL recorded a drastic fall of 15.8%, the highest monthly drop observed across the top 1o DeFi platforms, according to DeFiLlama,

Source: DeFiLlama

How much are 1,10,100 MKRs worth today

On expected lines, governance token MKR responded positively to the news of the surge in revenue. according to CoinMarketCapthe coin exchanged hands at $655.79, an increase of 2.8% in the 24-hour period.

However, on-chain activity didn’t reflect the positive sentiment. Data from Santiment highlighted that after the steep rise on June 10, new addresses and activity of the existing addresses dipped dramatically.

Source: Santiment

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