- MakerDAO announced an open competition to invest $1 billion in tokenized US Treasury offerings
- Thanks to this announcement, the price of MKR saw a significant increase
MKR witnessed a significant price increase in the last 24 hours after a long period of negative price action. The latest increase in value can be attributed to the protocol’s recent announcements at the ETHCC.
Making the right moves
A major catalyst for the price increase is MakerDAO’s unveiling of a $1 billion investment program focused on tokenized US Treasury offerings. The move has attracted significant interest from industry giants including BlackRock’s BUIDL, Superstate and Ondo Finance, all of which have expressed their willingness to participate.
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By prioritizing the integration of Real-World Assets (RWAs) such as US Treasuries and bills, MakerDAO is addressing a crucial challenge in the cryptocurrency space and solidifying its position as a DeFi pioneer. This initiative aligns with founder Rune Christensen’s overarching Endgame Plan and represents a substantial restructuring of the protocol’s backup strategy.
Ultimately, the goal is to strengthen MakerDAO’s dominance within the DeFi ecosystem.
In addition to the institutional interest sparked by MakerDAO, another key driver of the protocol’s growth is its exceptional monetization ability.
Think about this: Ryan Watkins, co-founder of Syncrancy Capital, highlighted MakerDAO’s financial dominance, noting that it surpasses most Layer-1 and Layer-2 networks in fee generation. This is despite the fact that these networks have significantly higher valuations.
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Here it is worth highlighting that AMBCrypto’s analysis of Token Terminal’s data revealed that daily active addresses increased by 39.8% over the past month. Moreover, MakerDAO’s revenue also grew by 25% during the aforementioned period.
Source: Token terminal
MKR sees green
At the time of writing, MKR was trading at $2,651.82, with the price rising 10.9% in the past 24 hours. Along with the price increase, the altcoin’s MVRV ratio also recorded a huge increase, indicating high profitability among users.
Usually, a high MVRV ratio means that some holders have to indulge in profit taking, which causes a correction in the price.
Realistic or not, here is MKR’s market cap in BTC terms
Due to the fact that the MKR token gives voting rights to its holder, it can be safe to assume that some buyers are not looking for profit, but for a say in which direction MakerDAO goes.
This could mean that some holders choose not to sell and the selling pressure may not be as strong, compared to other tokens with high MVRV ratios.
Source: Santiment