- MakerDAO generated huge amounts of revenue compared to other networks.
- The price of MKR was growing, but the speed at which it was traded had slowed.
The recent rally of the crypto sector has caught the attention of many investors who are mainly looking for blue chip cryptocurrencies and meme coins.
Underneath all the hype, it was seen that the MakerDAO [MKR] network had been growing successfully for some time.
Income is increasing
According to recent data, revenue generated by the MakerDAO network exceeded that of most Layer-1 and Layer-2 networks. This bodes well for MakerDAO on many fronts.
The increased revenue indicated a growing user base and increased activity within the MakerDAO ecosystem. Moreover, it also showed increasing interest in its decentralized finance (DeFi) offering.
Source: Syncracy
MakerDAO’s increase in revenue can be partially attributed to the popularity of DAI, MakerDAO’s stablecoin.
DAI is the stablecoin of choice for many holders looking to take advantage of the current bullish sentiment in the market.
Responding to high demand
In response to high demand for DAI due to market conditions, an accelerated proposal for an executive branch vote was introduced in preparation for possible excessive demand for DAI due to bullish sentiment.
The proposed changes to the MakerDAO protocol are intended to ensure that DAI, the stablecoin issued on the platform, remains stable at a value of $1.
The proposed changes include adjusting stability fees for various collateral assets, increasing the SparkLend DAI lending rate, making PSM adjustments, increasing the Dai Savings Rate, and reducing the GSM pause delay.
By adjusting the stability fees for various collateral assets and increasing the interest rate for borrowing DAI through SparkLend, MakerDAO aims to influence borrowing and lending behavior within its ecosystem.
Additionally, adjustments to the Peg Stability Module (PSM) and the Dai Savings Rate are intended to improve the efficiency of managing DAI availability and incentivize users to hold the stablecoin.
The reduction of the Governance Security Module (GSM) pause delay is intended to make the protocol more responsive to market conditions.
These measures are proactive steps to protect the Maker Protocol during temporary market fluctuations.
The changes are temporary and once the market stabilizes, all procedures will return to their normal settings.
Source:
Another indicator of the growing interest in MakerDAO was the increase in activity on the network. According to AMBCrypto’s data analysis, activity on the MakerDAO protocol has grown by 24.0% over the past month.
How much is 1,10,100 MKRs worth today?
Just look at the price
Price-wise, MKR was trading at $2,598.55. In the last 24 hours, the price of MKR has increased by 4.77%. The total number of addresses with MKR had also grown in recent weeks.
However, the speed at which MKR traded had also decreased during this period, indicating that the frequency at which MKR traded had also decreased.
Source: Santiment