MakerDAO’s MKR price rises, surpassing Bitcoin BTC price as large investors accumulate their holdings

Maker (MKR), the governance token from decentralized finance (DeFi) lender MakerDAO, is nearing its highest price since last May, buoyed by rising protocol profits and capital accumulation by large investors.

The cryptocurrency rose nearly 5% in the last 24 hours to $1,320, moving closer to its early August peak of $1,366, CoinDesk price data shows. Exceeding this level would take the price to a 16-month record.

MKR has far outperformed the broader crypto market this year with a return of 152%. Bitcoin (BTC) is up 64% over the same period, while the CoinDesk DeFi Index (DCF), which tracks a basket of DeFi tokens, has gained less than 10%.

The rise came as MakerDAO, which issues the $5.5 billion stablecoin DAI, increasingly invests its vast reserves in U.S. Treasuries, benefiting from high yields in traditional bond markets.

According to a Makerburn dashboard, the protocol’s year-to-date revenue has quadrupled to $185 million, while its estimated annual profit has increased from $39 million to $58 million. MakerDAO also introduced a 5% reward for DAI last month to spur demand for the stablecoin. Its offering has increased by $1 billion since the beginning of August.

Two major crypto investors – also known as whales – have accumulated MKR this month, blockchain expert Lookonchain noted, a sign that sentiment towards the crypto asset is improving. One company purchased a total of $1.95 million worth of MKR starting September 4, while another whale bought $1.63 million worth of the token this week.

Crypto hedge fund Ouroboros Capital said the price increase is likely to continue due to increasing DAI supply and revenue, adding that a bullish technical chart pattern suggests a price target of $1,600.

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers