- MakerDAO reduces reliance on USDC, with Real World Assets (RWA) becoming a major source of collateral.
- Rising interest in wstETH is contributing to MakerDAO’s growth as DAI’s dominance in the stablecoin sector increases.
Despite competition from Lido in the DeFi sector, MakerDAO [MKR] continues to improve its protocol. Recent developments have shown that DAI is less dependent on USDC ash security.
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Blast from the past
Formerly USD Coin [USDC] accounting for a significant 51.7% of DAI’s collateral, making it the dominant asset. Meanwhile Ethereum [ETH] constituted 7.7% of the total distribution and served as a secondary collateral option.
Over time, USDC’s contribution to DAI collateral dropped to less than 9%. Real World Assets (RWA) now make up a substantial portion, with 25.5% of DAI collateral comprising various RWAs, including a diverse portfolio of short-term bonds.
This shift demonstrates MakerDAO’s efforts to diversify its collateral and reduce reliance on a single asset.
Source: MakerDAO
The inclusion of RWA not only helps secure DAI as collateral, but also helps generate overall revenue for MakerDAO. By incorporating real-world assets into the ecosystem, MakerDAO is expanding its potential revenue streams beyond cryptocurrency-related activities.
MakerDAO’s revenue increased remarkably by 32.9% last week, reflecting the positive impact of strategic changes. At the same time, the Total Value Locked (TVL) on the protocol has also experienced a similar increase, indicating growing trust and activity within the ecosystem.
The rising popularity of wstETH among MakerDAO users plays a major role in the protocol’s recent growth. With about 932,000 wstETH held by the Maker Protocol smart contracts, it represented about 46% of the total supply.
Users leverage their liquid ETH positions through wstETH for DAI lending and on-chain leverage, fostering a symbiotic relationship between wstETH and DAI within the protocol.
wstETH has gained significant traction within the Maker Protocol and closely approaches wETH in terms of Total Value Locked (TVL), making it one of the best collateral options.
Source: MakerDAO
State of MKR and DAI
At the time of writing, MKR was trading at $709.6, following remarkable price growth. However, the decline in MKR holdings by major addresses suggested reduced interest among whales, demonstrating a shift in investment preferences.
In addition, the number of addresses with MKR has also decreased over the same period, indicating changes in the composition of MKR token holders.
Realistic or not, here is MakerDAO’s market cap in terms of BTC
While DAI’s dominance in the stablecoin sector has increased, as evidenced by its growing market cap, the network’s growth has slowed significantly.
This decline may include a slowdown in new address adoption or a temporary decline in interest from new entrants, requiring further research to understand the underlying factors.
Source: Sentiment