- Whales bought DAI while trying to accumulate BTC.
- MakerDAO witnessed a sales spike.
With rising interest from institutional players such as BlackRock, Bitcoin [BTC] has received a lot of attention from whales. However, it seems that DAI, the stablecoin created by MakerDAO [MKR]may emerge as a beneficiary of this growing interest in BTC.
Realistic or not, here is MakerDAO’s market cap in terms of BTC
DAI’ng to buy Bitcoin
According to data from Santiment, traders have been closely watching the $30,000 to $31,000 price range for Bitcoin, with many major investors observing this move.
These traders quickly collected stablecoins like DAI as they went to press, possibly in an effort to collect more BTC.
It remains to be seen whether these whales will continue to buy more BTC. In the process, however, DAI can benefit greatly from the whales’ bullish sentiment.
Source: Sentiment
At the time of writing, DAI’s market cap was $4.5 billion, after falling significantly in the past week. In terms of speed, growth was observed by the stablecoin, indicating an increased frequency of DAI transactions.
Source: Sentiment
The popularity of DAI may also improve the state of MakerDAO. According to Token Terminal, MakerDAO’s revenue had grown 41.5% over the past month.
MakerDAO embraces the real world
DAI’s popularity aside, one of the major contributors to MakerDAO’s rising revenue would be the Real-World Assets (RWA) covered by the protocol.
Since May, the Maker Protocol has seen an increase in the percentage of fees generated by RWAs, from 72.6% in April to 79.7%. Throughout the year, this particular portfolio has contributed 78.5% to total fees to date.
The growth in Maker’s RWA balance in May can be attributed to the deployment of additional DAI from Monetalis Clydesdale’s vault.
For the uninitiated, Monetalis Clydesdale’s vault witnessed a significant increase in debt, from DAI 500 million to about DAI 1.14 million. In May alone, the vault successfully attracted another 560 million DAI.
Source: MakerDAO
Of the vault’s assets, 33% will be allocated to 0–1 year Treasury ETFs (IB01), 14% to 1–3 year Treasury ETFs (IBTA), and the remaining 53% will be invested in a 0-6 month treasury ladder.
Other vaults like BlockTower Credit and Fortunafi also contributed greatly to MakerDAO’s growth.
Is your wallet green? Check out the MKR Profit Calculator
State of MKR
However, MKR did not see the same growth. The token has dropped significantly over the past month along with its volume.
Source: Sentiment
At the time of writing, MKR was trading at $879.19.