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Crypto: MakerDAO Breaks All Records

Mon 23 Oct 2023 ▪ 3 min of reading ▪ by Evans S.
Getting informed Altcoins

In the crypto sphere, some actors stand out from the crowd with their ingenuity and performance. One of them is MakerDAO, which recently made a significant impact by achieving a record annualized revenue. But what lies behind these impressive figures?

Maker DAO record

A Meteoric Rise in Crypto

While the crypto industry is in turmoil due to a major Bitcoin developer revealing a critical flaw, MakerDAO shines and steps into the limelight. Its strength reassures and captivates its community.

According to data from Makerburn.com, MakerDAO’s annualized revenue generated from transaction fees has surged to a peak of $213 million.

This represents an increase of over 450% since the beginning of the year. To put things in perspective, in January, this revenue was less than $50 million.

The essence of Maker lies in stablecoin lending. It generates income by charging fees to users who borrow the DAI crypto and by collecting fees when a borrowed position is liquidated. Since the beginning of the year, the protocol’s monthly fees have increased by 438%.

The Real Heroes

Beyond the numbers, it’s essential to understand what drives this rapid growth.

The answer is simple: real-world assets (RWAs). These assets, which involve variations on the chain of physically existing assets or in traditional finance, encompass everything from real estate to stocks to commodities.

MakerDAO has harnessed the potential of these assets by allowing users to deposit tokenized RWAs as collateral to issue DAI.

According to an analysis by Steakhouse, 67% of Maker’s revenue comes from its RWAs. Thus, out of a total annualized revenue of $213 million, $126 million can be attributed to RWAs.

The activity on the MKR network, MakerDAO’s crypto, has been steadily growing recently. Data from Santiment shows a 35% increase in the daily number of active token addresses on a 30-day moving average. At the same time, demand has risen by 56%, leading to a 6% increase in the value of MKR last month.

MakerDAO, with its ability to innovate and capitalize on real-world assets, demonstrates that the crypto sector is constantly evolving. Dynamics can pivot at lightning speed, and for now, MakerDAO is setting the pace. In this vibrant context, increased vigilance and continuous information are essential. And, as suggested by a $840 billion traditional banking giant’s move into crypto, even traditional financial titans cannot ignore this revolution.

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Evans S. avatar
Evans S.

Fasciné par le bitcoin depuis 2017, Evariste n'a cessé de se documenter sur le sujet. Si son premier intérêt s'est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l'état du secteur dans son ensemble.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.