Blockchain protocol MakerDAO (MKR) continues to make significant gains while maintaining strong upward trend throughout the year. MKR has recorded significant growth of over 358%, accompanied by positive metrics that reflect increased adoption and usage of the protocol.
Furthermore, upcoming voting initiatives aim to further increase the benefits of the platform for its stakeholders.
MakerDAO Announces Plans for Fee System Changes
In a recent announcementMakerDAO stated that it closely monitors developments in the cryptocurrency market and has gained a better understanding of the impact of recent proposals.
As a result, the protocol recommends the next set of changes to its fee system. MakerDAO emphasized that new adjustments will likely be introduced soon depending on market dynamicssuch as pricing, demand for leverage, and the external fee environment that encompasses centralized funding fees (CeFi) and decentralized effective funding fees (DeFi).
The protocol further noted that the Maker fee system will be adjusted accordingly if the external fee environment continues to show signs of decline.
Efforts are underway to update the language of the tariff system under the Scope of Stability, including the development of a new iteration of the Exposure model. These updates aim to ensure that the system can adjust rates more gradually and effectively in the future.
Based on recommendations from BA Labs, a blockchain infrastructure provider, Stability Facilitator proposes several parameter changes to the Maker Rate system, which will be subject to a future vote by the Executive.
As shown in the table above, the proposed changes include reducing the Stability Fee by 2 percentage points for various collateral types such as ETH-A, ETH-B, ETH-C, WSTETH-A, WSTETH-B, WBTC-A , WBTC .-B, WBTC-C. Additionally, the Dai Savings Rate (DSR) and DAI Effective Lending Rate for Spark will also be reduced by 2 percentage points.
However, an active user of the protocol presented an alternative point of view, suggesting using the demand shock opportunity to expand the net interest margin. While agreeing to the proposed 2% interest rate reduction For borrowers, the user advocates a larger 4% reduction in DSR, which he believes will further benefit MakerDAO’s net interest margin.
Ultimately, the outcome of the voting process will determine whether these proposed changes are implemented and benefit MakerDAO stakeholders. Further decisions about rates and fees will be made based on the results.
Market capitalization soars
According to data From Token Terminal, MakerDAO has demonstrated significant growth and positive performance across several key metrics over the past 30 days.
In terms of market capitalization, MakerDAO’s fully diluted market cap has reached approximately $3.07 billion, reflecting a notable increase of 40.9% over the past 30 days. The circulating market cap is around $2.82 billion, showing a similar growth rate of 41.1%.
![Stakeholder-Focused MakerDAO Updates Boost MKR Price by 10% 1 MakerDAO](https://thegurumedia.com/wp-content/uploads/2024/03/Screenshot_85.jpg)
On the other hand, the total value locked (TVL) on MakerDAO has increased by 10.1% over the past 30 days to approximately $7.05 billion.
The token volume of business for MakerDAO increased by 126.6% last month, reaching approximately $4.35 billion. This increase in trading volume suggests increased market activity and interest in the protocol.
In terms of user activity, MakerDAO saw an increase in the number of daily active users, with a 32.2% increase to 193 users. On the other hand, weekly active users decreased by 22.6% to 783 users. However, monthly active users show a positive growth rate of 10.0%, reaching 2.88 thousand users.
Short-Term Outlook for MKR
Regarding price action, MKR is currently trading at $3,158, reflecting growth of 4.8% in the last 24 hours, 10% in the last seven days, and an impressive 49% increase in the last fourteen and thirty days .
The token has found a short-term wall of support at $3,048. This level of support is significant for the token growth prospects. Another important support level is $2,884, which further contributes to the short-term stability and potential growth of the token.
On the other hand, the closest resistance level is seen at its 28-month high of $3,321. This level represents the highest point reached by the token since November 2021.
Featured image from Shutterstock, chart from TradingView.com
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