The Price of MakerDAO’s Native Token ($MKR) Achieved A 16-month Peak

MakerDAO's token

MakerDAO’s token, $MKR, is defying the general downward trend in cryptocurrencies by surging almost 200% this year. It’s now at a 16-month high, crossing $1,500 per token. This rise is attributed to Maker’s increasing annualized revenue, hitting close to $200 million, mainly fueled by collateral supporting its stablecoin, DAI. Notably, real-world assets like U.S. Treasury bills contribute significantly to this collateral, making up 53% of DAI’s backing.

Researcher Thor Hartvigsen highlights that 63% of Maker’s revenue comes from these real-world assets. As DAI supply and U.S. interest rates grow, Maker’s protocol expands. The researcher points out that DAI’s supply has rapidly increased from $4.5 billion to over $5.5 billion due to the 5% yield in the sDAI vault on the Spark Protocol.

Hartvigsen suggests that Maker’s price could keep rising as it currently trades at a 6.7 price/revenue multiple. With the continuous growth of DAI’s supply, Maker’s revenue is expected to rise, positively impacting its price. Going long on MKR is seen as a direct bet on the future growth of DAI’s supply. Additional potential catalysts include a 1:12,000 token split and a potential token rebrand.

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Chi Do
Chi Do
Chi Do is a content writer at CoinMinutes, responsible for creating most of the content on the website, including news related to Bitcoin (BTC), Ethereum (ETH), Blockchain, Decentralized Finance (DeFi), and more. With a keen interest in cryptocurrencies since the 2020s, Chi has acquired extensive experience and knowledge in this field. Chi holds a Bachelor's degree in communication from Academy of Journalism and Communication in Vietnam.

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