The MKR coin from MakerDAO has grown significantly, earning 200% since the start of the year and this week reaching its highest level since May 2022. In less than a month, the token has also increased by about 50% thanks to rising MakerDAO earnings. With an annualized income of $193 million, MakerDAO is presently the DeFi ecosystem’s top revenue-generating protocol. This money comes from the interest that DAI stablecoin minters pay on the real-world asset (RWA) collateral they use, such U.S. Treasury notes and on-chain collateral.
According to DeFi researcher Thor Hartvigsen, Maker revenue is mostly based on the market capitalization of DAI because the collateral used to support the stablecoin generates fees. Maker revenue will probably rise if the DAI supply keeps expanding, which would likely have a favorable effect on the price.
Additionally, consumers are being encouraged to store DAI rather than non-interest-bearing stablecoins like USDT and USDC by the DAI Savings Rate (DSR), which has been increasing. In comparison to rates offered on DeFi platforms holding other stablecoins, the DSR is now 5%, which is significantly higher.
The ‘Endgame Plan’ on MakerDAO’s roadmap aims to increase Ethereum holdings and decrease dependency on centralized collateral like USDC, making DAI a free-floating asset in the long run. MakerDAO and DAI have strong long-term foundations, which is why the token is now bucking crypto market trends. MKR reached a 16-month high of $1,523 during early Asian trading on September 28. As of the time of writing, the stock was up 7% on the day and trading at $1,510.Despite gains of 18% over the previous weekend and 27% over the past two weeks, the token is still down 76% from its all-time high of $6,292 in May 2021, according to CoinGecko.