Journalist
Posted:
- MakerDAO saw an increase in weekly sales.
- MKR continued to combat low demand.
Stablecoin lender MakerDAO [MKR] has reached new heights in monetization. According to data from DefiLlamaMakerDAO is now generating more revenue weekly than at the height of the 2021 bull market.
Source: DefiLlama
This comes after the decentralized finance protocol (DeFi). set record highs in monthly costs and year-over-year revenue in October. In October, transaction fees paid to use the protocol amounted to $16.12 million, an increase of more than 400% in monthly fees since the beginning of the year.
Annualized revenues from these transaction fees reached a record high of $213 million in October, up 450% since January.
Real world assets are going through tough times
Described as on-chain variations on assets that exist in the physical world or in the traditional financial world, activity around real-world assets (RWAs) on MakerDAO led to the significant growth recorded in October.
Data taken from a Dune Analytics dashboard created by data analyst Steakhouse showed that 67% of Maker’s fee revenue came from its RWAs in October.
However, due to low demand for this asset class since early November, the share of Maker’s Fee revenues has declined significantly. By November 24, this had fallen to below 10%.
The low demand for RWAs on MakerDAO this month has also manifested itself in the form of USD outflows from this asset class. So far this month, $300 million has been removed from RWAs on MakerDAO, marking the highest monthly value of outflows ever.
Source: DefiLlama
As a result of these outflows, there has been a decrease in the RWA composition of MakerDAO’s full total value (TVL). In October, RWAs enjoyed a 43% share of MakerDAO’s total TVL. At the time of writing this was less than 35%.
According to data from DefiLlama, there has been a steady decline in RWA TVL since October 28. At the time of writing this was $2.71 billion.
MKR is experiencing low demand
An on-chain review of MKR’s on-chain activity showed that the token posted a two-month high in its daily new demand on November 13. According to Santiments data, 436 new addresses were created to trade the altcoin.
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However, MKR’s daily trading activity has been on a downward trend since then. On November 27, only 140 new addresses traded the altcoin, representing a 70% decline from the November 13 high.
Similarly, the daily number of unique addresses conducting MKR transactions has fallen over the past two weeks. Since November 13, MKR’s number of daily active addresses has fallen by 44%.
Source: Santiment