MakerDAO (MKR/USD) is one of the oldest DeFi projects that has been around for years now. However, it has never seen as much growth as it did in the past year, during the DeFi sector’s explosion that started in 2020, and is still going at full strength.
Messari’s recent data shows that MakerDAO just hit a major growth milestone, increasing its total supply by 46 times in a year, generating over $63 million.
What makes MakerDAO and DAI so popular?
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According to what is known, these impressive earnings have come from a variety of sources, including the DAI stablecoin. The Maker protocol also managed to benefit from its overcollateralized loans.
Plus, it is also additionally attractive to users due to its price stability module. Then, there are stablecoin trading fees that allow the project to earn an extra profit on top of everything else. And, let’s not forget about the revenue coming from the fees charged on liquidated vaults.
Given the 46x increase of its total supply, MakerDAO’s stablecoin is now technically the biggest and most successful decentralized stablecoin in the world.
It is also worth noting that MakerDAO’s MKR has also managed to benefit from the project’s popularity. The token functions as the project’s governance token, but it has other use cases, also. As a governance token, it allows users to vote on important decisions and changes in the protocol, and it is used when liquidations are not fully covering outstanding DAI. MKR then jumps in in order to compensate the users.
What is next for MakerDAO?
Of course, MakerDAO has been among the most influential projects in the entire DeFi sector. Due to its role in DeFi, DAI was able to see the kind of growth that is achieved, and it likely won’t end here, either.
The crypto community tends to be very tenacious once it gets a taste of a beneficial new trend, and decentralized stablecoins are arguably better than centralized. One of its current goals is to make DAI the go-to decentralized stablecoin, which is only one of several major milestones that the community and the project plan to reach in the remaining months of 2021, and beyond.
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