Journalist
Posted:
- Amid a slowdown in the DeFi market, MakerDAO stood out with a 148.2% fee increase.
- The price of MKR continued to decline despite a spike in velocity.
In the DeFi landscape that has seen slow growth in recent months, MakerDAO[MKR] emerged as a notable exception, showing notable progress on multiple fronts.
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Huge increase in fees
A notable factor contributing to MakerDAO’s success was the significant increase in fees generated by the protocol. Token Terminal’s data showed a notable 148.2% increase in fees over the past week.
This increase meant increased usage and activity within the MakerDAO ecosystem. It also reflected the protocol’s growing appeal in the industry.
To leverage this increased usage, MakerDAO has proactively pursued updates to improve the protocol. An indicator of this commitment is the 4.3% growth in the number of core developers within the network over the past week.
This demonstrates a dedicated effort to continually refine and improve the protocol.
Source: token terminal
Moreover, MakerDAO’s board also actively worked on improving the platform.
She recently got one proposal to adjust Spark Protocol D3M parameters, supported by 93,036 MKR tokens. This proposal includes increasing the DIRECT-SPARK-DAI maximum debt ceiling from 200 million DAI to 400 million DAI and extending the DIRECT-SPARK-DAI ceiling increase cooldown from 8 to 12 hours.
In simpler terms, this adjustment is intended to expand lending capacity within the protocol, allowing greater flexibility and use of assets.
No impact on MKR
Although MakerDAO made significant progress, its token’s price movement took a downturn over the past month. This decline was marked by multiple lower lows and lower highs, indicative of a bearish trend.
At the same time, the token’s network growth dropped significantly, signaling a reduced inflow of new addresses. However, the protocol has seen an increase in token velocity, a metric that measures how quickly tokens change hands within the ecosystem.
Realistic or not, here is MKR’s market cap in BTC terms
This speed increase means increased activity and circulation of MakerDAO tokens, which can have several implications for the overall health and usage of the protocol. At the time of writing, MKR was trading at $1116.4.
Source: Santiment
In an effort to further raise its profile, MakerDAO explored the possibility of becoming the first WEB3 platform to introduce tokenized treasury bills. Reports suggest that the DeFi protocol is in discussions about an experimental project involving tokenized treasury bills, with a significant $100 million investment on the horizon.