In a recent announcement On social media platform X (formerly Twitter), MakerDAO, the Ethereum-based protocol responsible for issuing the algorithmic stablecoin DAI, provided insights into the performance of the Maker Protocol following recent changes.
Over the past few weeks, MakerDAO has implemented significant updates to the protocol and DAI stablecoin.
The introduction of the Accelerated Proposal and direct deposit module (D3M) in Spark’s Metamorpho Vault has had a notable impact on the ecosystem.
Increasing supply and demand for DAI
Looking at the key metrics demonstrating the effects of these protocol changes, the DAI Supply in circulation currently is almost 5 billion, reflecting a growth of approximately 300 million in the last month. This growth indicates continued demand for the stablecoin.
On the other hand, the Dai Savings Rate has increased significantly since the implementation of the Accelerated Proposal.
Approximately 1.54 billion DAI is currently deposited in the Dai Savings Rate, of which approximately 976 million DAI is sDAI, representing an increase of approximately 400 million DAI on deposits.
Maker Protocol’s total value locked (TVL) equates to approximately $8.4 billion across various vault types. This TVL growth can be attributed to strategic deployments in D3M modules, significant contributions from Ethereum-based collateral, and the integration of real-world assets. These developments reinforced the protocol’s diversification and resilience.
MakerDAO Ethereum Vaults Thrive
A notable addition to the MakerDAO ecosystem is Morpho DM3, which allows Morpho Vault to mint DAI. Currently, the loan pool has deployed 200 million DAI.
According to the protocol post, this allocation is expected to generate approximately 50 million in annual revenue for Maker Protocol, making it the second largest core vault in terms of annualized fees. Will play a significant role in generating revenue and contributing to the sustainability of Maker Protocol.
Among the types of Ethereum vaults within the MakerDAO ecosystem, the ETH-C vault stands out with the largest value locked in cryptographic collateral at approximately $1.88 billion.
This vault generates approximately US$43 million in annual fees, highlighting its importance within the Maker ecosystem and its contribution to the protocol revenue streams.
Another important component is Spark D3M, which ships with around 970 million DAI. This module is projected to generate annual revenue of approximately 28 million.
These recent changes have positively impacted the Maker Protocol. The increase in DAI supply, the growth of the Dai Savings Rate, the expansion of collateral and the introduction of different types of vaults have contributed to the growth and development of the protocol.
Despite the growth in the MakerDAO ecosystem, the native token MKR has seen a continuous price drop of 5.9% over the last fourteen days.
In the last seven days alone, the token has seen a significant price drop of 17%, resulting in its current trading price of $3,355.
However, despite the price drop, Token Terminal data reveals positive trends. The market capitalization of the protocol it is currently $3.3 billion, reflecting a notable 28% increase over the past 30 days.
Additionally, MKR token trading volume experienced a substantial increase, reaching $5.9 billion, representing a 119% increase over the same period.
Featured image from Shutterstock, chart from TradingView.com
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