Maker (MKR), which has attracted attention recently, is eroding its former peaks. The altcoin, which reached May 2022 peaks, also received support from crypto hedge fund Ouroboros Capital. The famous company expects the altcoin price to reach these levels with its protocol profits.
Large investors also turned their attention to MKR
MKR, the governance token of MakerDAO, one of the important representatives of the DeFi field, continues to attract the attention of large investors. According to its data, the altcoin gained almost 5% in the last 24 hours, coming very close to its peak of $ 1,366 in early August. MKR is currently trading at $1,320. If it can surpass this level, it will surpass a 16-month record.
MKR has vastly outperformed the overall altcoin market this year. While Bitcoin gained 64% in value throughout the year, MKR managed to offer a 152% return to its investors. During the same period, the DeFi index increased by less than 10%.
Investment strategy in treasury bills shows its effect
MakerDAO has quadrupled its annual revenue to $185 million since the beginning of this year. The altcoin also launched a $5.5 billion stablecoin called DAI. So he began investing his vast reserve assets in U.S. Treasury bills. This strategy aims to take advantage of the high yields in traditional bond markets.
According to the latest data, the company’s estimated annual profit increased from $39 million to $58 million. It also aimed to increase demand for the stablecoin by offering a 5% reward for DAI last month. Thanks to this policy, the supply of DAI has increased by $1 billion since the beginning of August.
Experts expect more from the altcoin project
Crypto hedge fund Ouroboros Capital states that increased DAI supply and revenues will continue the rise in MKR price. The company also suggests that a technical chart pattern supporting the bull market could push MKR’s price up to $1,600. As reported by Kriptokoin.com, MKR has been on more than one altcoin bull prediction list in recent weeks.
Blockchain detective stated that whales on Lookonchain accumulated MKR this month. This is a sign of increasing sensitivity towards the altcoin project. One organization purchased a total of $1.95 million worth of MKR as of September 4, while another whale purchased $1.63 million worth of tokens this week.
2 whales are accumulating $MKR.
Whale "0x3737" spent 1,194 $ETH($1.95M) to buy 1,700 $MKR at $1,147 since Sept 4.https://t.co/1kBo03U5Us
Whale "0xaD0" spent 992 $ETH($1.63M) to buy 1,261 $MKR at $1,291 since Sept 18.https://t.co/aYVTJkgA1s pic.twitter.com/XojIUQrSGk
— Lookonchain (@lookonchain) September 20, 2023
The protocol’s annual revenue has quadrupled since the beginning of the year to $185 million, according to the Makerburn dashboard. Estimated annual profit increased from $39 million to $58 million. MakerDAO also offered a 5% reward to DAI last month in an effort to increase stablecoin demand. Supply has increased by $1 billion since the beginning of August.
Despite expectations, investors need to be careful
Investors and experts agree that this altcoin could reach a record high soon. Market watchers and major investors consider MKR to be a promising investment vehicle. However, it should not be forgotten that the altcoin market is always open to volatility and caution should be exercised when investing.
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