- MakerDAO’s market cap and revenue have grown significantly over the past year.
- MKR’s price soared despite slowing network growth.
Despite the uncertainty the crypto markets have faced in recent months, MakerDAO [MKR] has consistently performed well.
MakerDAO is expanding
According to recent data, MKR’s market capitalization is five times higher in terms of year-on-year growth, while its monthly revenues are ten times higher in terms of year-on-year growth.
Source: token terminal
MakerDAO’s dominance in the DeFi sector is a major contributing factor to this trend. Maker currently accounts for almost 40% of all DeFi profits on Ethereum [ETH].
Its strength lies in the stablecoin DAI, which boasts broad adoption, deep liquidity, extensive integrations and a proven track record.
In fact, Maker’s financial prowess is so substantial that it generates more costs than many Layer 1 and Layer 2 solutions.
Source:
Strike season
Historically, Maker has been criticized for his conservative approach. However, the continued rollout of Endgame aims to change this perception by transforming Maker into a more scalable ecosystem of modular protocols.
In this cycle, Maker is poised to play a critical role in the staking, redrawing, and tokenized basic trading economies by offering users on-chain financing options.
This presents a multi-billion dollar opportunity for fees, allowing Maker to capture a significant portion of DeFi profits.
Maker already generates substantial lending revenue at a fraction of the sETH offering, competing with the revenue Lido generates across the entire sETH offering.
Source: Syncracy
The expected use cases for token repossessing and tokenized base trading positions are expected to yield similar results, further strengthening Maker’s financial position.
Realistic or not, here is MKR’s market cap in BTC terms
At the time of writing, MKR was trading at $2,706.20 and its price was up 4.28% in the past 24 hours. The volume it was trading on was up 20.16%.
In terms of network growth, there was a decline on the broader chart, indicating that interest from new addresses is waning.
Source: Santiment