MakerDAO, represented by the MKR token, emerged as a standout DeFi project during the bullish trends of 2021. As time progressed, the DeFi sector saw a proliferation of new projects, intensifying competition all around.
How has MakerDAO been navigating these shifting dynamics?
As per a recent report on dApps rankings, MakerDAO managed to secure a position among the top 10 dApps based on the fees generated weekly.
This observation is crucial as it indicates that the platform continues to see significant utilization.
Over the past two years, MakerDAO’s fees have seen remarkable growth. Previously, daily fees stood at an average of under $30,000 in October 2022.
Subsequently, there was a noticeable uptrend in daily fees, with a peak of $1.19 million recorded on the 8th of April 2024.
November 22nd held a special significance for MakerDAO’s fees, as it marked the first day when dApp fees surpassed $1 million in the latter part of 2024.
Additional metrics further support the uptick in dApp activity. For instance, token volume escalated from less than $40 million to $356 million over the last four weeks, with an average exceeding $200 million in the recent three-day period.
Notably, MakerDAO’s Total Value Locked (TVL) has been witnessing a recovery phase in recent weeks. From its lowest point earlier this year, the TVL has surged by $1.5 billion.
Prospects for MKR
The notable surge in volume, TVL, and fees point towards an expanding utility for MakerDAO amidst the current market fervor. However, these positive trends have not been duly reflected in its native MKR token.
In 2024, MKR has predominantly been on a bearish trajectory. It slumped to a $1,006 low on October 25 before rebounding by 61% to the current price level of $1,630.
Compared to its top competitors, most of which have doubled in value from their 2024 lows, MakerDAO appears to be lagging behind.
In essence, MKR could be categorized among undervalued assets with significant potential for upside growth.
The upsurge in MKR value this year implies that accumulation occurred when it hit recent lows. Despite relatively weak demand, the scenario could evolve as liquidity dynamics shift.
Nonetheless, the relatively high price of MKR might act as a deterrent for potential investors, possibly contributing to its current sidelined status.