- MakerDAO grew revenue at a rate that was much higher than other networks.
- MKR price increased but the speed of trading declined.
Many investors are interested in the recent crypto rally, and they’re looking for meme coins and blue chip cryptocurrencies.
It was clear that the MakerDAO [MKR] Since quite some time, network has seen a steady growth.
Revenues are on the Rise
Recent data shows that the MakerDAO Network generates more revenue than the majority of Layer-1 and Layer-2 network. MakerDAO is set to benefit from this on many levels.
The higher revenue was indicative of an increasing user base, and more activity in the MakerDAO Ecosystem. It also showed a growing interest in the decentralized finance (DeFi), offerings.
MakerDAO’s recent revenue surge can be partly attributed to DAI’s popularity, MakerDAO stablecoin.
DAI is a stablecoin chosen by many who wish to profit from the current bullish sentiment on the market.
Response to high demand
To prepare for the potential excess demand of DAI due bullish sentiment, a proposal was submitted for an Executive vote to respond to the large amount of DAI demand resulting from current market conditions.
The proposed changes to the MakerDAO Protocol are intended to ensure that DAI, a stablecoin released on the platform, is stable at $1.
The proposed changes include the adjustment of stability fees for collateral assets, the increase in SparkLend DAI borrowing rate, the PSM adjustments, the raising of the Dai savings rate, and the reduction in the GSM Pause delay.
MakerDAO aims to influence lending and borrowing behaviors in its ecosystem by adjusting stability fees and increasing interest rates for DAI borrowed through SparkLend.
The Peg Stability Module and the Dai Savings rate have been adjusted to improve the efficiency in managing DAI availability, and to encourage users to keep the stablecoin.
This reduction is intended to improve the responsiveness of the protocol to changing market conditions.
These are proactive measures to protect the Maker Protocol in times of temporary market fluctuations.
Once the market stabilizes all procedures will go back to their normal settings.
An indicator of MakerDAO’s growing popularity is the increasing activity in the network. AMBCrypto, a data analysis company, found that the activity on MakerDAO protocol has grown by 24.0% during the past month.
What is the cost? 1,10,100 MKRs worth today?
Looking at the Price
MKR traded at $2,598.55. MKR’s price has increased by 4.77% in the past 24 hours. In the past weeks, MKR has been held by more addresses.
The velocity of MKR trading also decreased during this time, which indicates that MKR trading frequency also fell.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
Source: ambcrypto.com