- Maker has been displaced as the second largest DeFi protocol in terms of TVL.
- The protocol’s revenues have increased over the past month due to significant portfolio changes.
Loan protocol MakerDAO [MKR] has been replaced by Aave [AAVE] as the second largest decentralized finance (DeFi) protocol in terms of total locked value (TVL) after Lido Finance [LDO]dates from Defillama showed.
Is your wallet green? Check out the MakerDAO Profit Calculator
Maker’s TVL’s continued decline in recent months has been exacerbated by the collapse of Silicon Valley Bank (SVB), the depeg of USDC and its DAI stablecoin, and the resulting drop in DAI supply rates.
At the time of writing, Maker’s TVL stood at $5.58 billion, down 15% since March 10, when the SVB collapsed, and the USDC and DAI stablecoins lost parity with the US dollar.
Source: DefiLlama
Some predict an approaching end; one person strives for a bright future
Pseudonymous DeFi analyst Nah_Gmy found in a series of tweets published on July 15 that “the last two US-based VCs have capitulated.” According to the Twitter user, Paradigm, a research-driven technology investment firm, “unloaded their bags 4 months ago and a16z is currently in liquidation.”
This comes a few years after VC firms Polychain and Dragonfly divested all of their MKR holdings and left the project. The continued exit of giant VC firms from Maker offers a bleak view of what many see in the future.
2/ The last two US-based VCs have capitulated.
Paradigm unloaded their bags 4 months ago and a16z is currently in liquidation. Interestingly, they even use the same desk to execute. Total disbelief.
Polychain and Dragonfly have already unloaded their cargo $ MKR years ago pic.twitter.com/DdsHs6gxzd
— No (@nay_gmy) July 15, 2023
However, Maker co-founder Rune Christensen has intensified the accumulation of MKR over the past month. Nah_Gmy noted that Christensen “might be the only founder in crypto to ever buy his own token.” According to the analyst, this shows his commitment to making sure Maker stays afloat.
As of November 2022, Christensen has sold a total of 13.57 million LDO for approximately $26.14 million. The average selling price of these LDO tokens was $1.92. With the proceeds of these sales, he bought back 32,637 MKR tokens. This amounted to $23.95 million, at an average price of $734.
Rune Christensen, co-founder of MakerDAO, has sold a total of 13.57 million LDO ($26.14 million) to buy back MKR since 2022/11, with an average sale price of $1.92; cumulatively purchased 32,637 MKR ($23.95 million), with an average price of $734. The two Rune addresses currently contain a… https://t.co/Nsb8K9gJug
— Wu Blockchain (@WuBlockchain) July 17, 2023
The two addresses associated with the co-founder currently hold a total of 123,893 MKR tokens, worth approximately $122 million. This represents 12.6% of the total circulating supply of MKR tokens.
Realistic or not, here is MakerDAO’s market cap in terms of BTC
State of Maker
After USDC’s depeg in March, Maker began efforts to diversify its supporting assets and reduce its reliance on the stablecoin. The protocol reduced USDC’s contribution to DAI collateral from 50% to less than 9% and made real-world assets (RWA) a significant portion of its portfolio.
The inclusion of RWA helps secure DAI as collateral and contributes to overall revenue generation for MakerDAO, which has happened over the past month. According to data from Maker burnMaker’s revenue has been on an upward trend ever since.
Source: Maker Burn
In June, Maker increased its Dai Savings Rate (DSR) from 1% to 3.49%. It provided additional incentives for investors to hold and lend DAI over other stablecoins such as USDC and USDT. As a result, the DSR registered an inflow of $170 million in the past month. This represented more than 100% growth, according to data from Dune analysis.