Maker’s native coin – MKR – suffered significant losses during the TerraUST-induced market crash in May 2022. During that period, DAI emerged as one of the leading stablecoins using an algorithmic mechanism, a feature it shares with the ill-fated UST stablecoin.
Following the widespread downturn, the MakerDAO team quickly implemented measures to overhaul the collateral mechanism that supports the DAI stablecoin. The subsequent shift to a hybrid mechanism proved to be a major catalyst for the ecosystem which in turn stimulated the MKR price trajectory.
Maker outperforms Bitcoin and Ether in year-to-date gains
After seeing a collective surge in the first quarter and a relative calm in the second quarter, this current trend has seen an overall downward trend in the cryptocurrency market. The total market capitalization is now approaching $1.09 trillion, down about 10% from its July 2023 peak of $1.2 trillion.
Despite this overall decline, both Bitcoin and Ether have seen impressive year-to-date gains, with the former recording a 63% increase while the leading altcoin is up 40%. Many other assets have also shown significant returns, largely driven by specific catalysts associated with each.
One noteworthy example, according to the latest CoinMetrics a report, is MKR, which is up a staggering 185% year-to-date. In fact, MKR crossed the $1,500 mark on October 1st for the first time since May 2022.
The report explained that the rise in the value of MKR can be attributed to the successful implementation of incentive plans aimed at increasing the supply of Dai. This was achieved by increasing the Dai saving rate and taking advantage of the allocation of US Treasury bills by the DAO.
MKR network activity is high
In addition to the MKR price action, active addresses reached a 10-week high. Support Climbing, there were over 65 active titles He added In just ten days from September 17 to 27.
Moreover, the transaction volume has also reached levels not seen since last May, which mainly indicates an increased user engagement rate as the market improves.
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