Connect with us
Active Currencies 16073
Market Cap $3,792,138,234,657.60
Bitcoin Share 52.42%
24h Market Cap Change $-2.24
Altcoin

MakerDAO’s latest developments could have this effect on MKR and its holders

2min Read
Posted:
Avatar
editors
Avatar
editors
Posted:

Share this article

  • MakerDAO announced a new proposal that would remove REN BTC vaults
  • Their revenue through real-world assets increased, however, TVL declined

In a tweet dated 10 December, MakerDAO revealed that they would be off-boarding various vault types with risk exposure. One of them would be REN-BTC vaults if the new proposal is passed.

Read MakerDAO’s [MKR] Price Prediction 2023-2024

New proposals on MakerDAO

If the proposal passes, all RENBTC-A positions with a collateralization ratio below 5000% will be liquidated. Users won’t be able to avoid liquidation unless they pay off their remaining DAI debt.

This proactive approach of the DAO, to ensure the safety of its users, could be received positively by the crypto community.

The amount of revenue generated by MakerDAO from real-world assets increased as well. At the time of writing, 75% of all revenue generated by MakerDAO had been through real-world assets. 

Due to this growth in revenue, the DAO governance rewarded a 1% yield to DAI holders. 

 

Despite the growing revenue, MakerDAO’s total value locked (TVL) declined significantly over the last week. At press time, the MakerDAO‘s TVL stood at $6.34 billion, according to data provided by DeFi Llama.

Source: Messari

Looking at the token

MakerDAO’s token, MKR wasn’t able to fare well either. The number of daily active addresses for the MKR token declined significantly over the past month. Furthermore, MKR’s velocity depreciated as well. A declining velocity indicated that the frequency at which MKR was being exchanged amongst addresses had reduced. 

MKR’s token holders weren’t able to make any profits as well. From the image below, it can be seen that the volume of transactions that were made in profit had reduced significantly.

Source: Santiment

MKR’s token wasn’t able to garner interest from new addresses as well. The network growth for the token declined during the last 30 days. This implied that the number of new addresses transferring MKR had reduced.

Surprisingly, despite these factors, MKR witnessed a spike in interest from large addresses from 14 November. After this, interest remained consistent throughout the past month.

This implied that large addresses remained undeterred by market volatility and continued to show faith in the token.

Source: Santiment

At the time of writing, MKR was trading at $612.35. Its price fell by 0.32% in the last 24 hours.

 

Previous:
Next:

Share

Avatar
Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.