Maker’s native token – MKR – suffered significant losses during the market crash triggered by TerraUST in May 2022. During that period, DAI stood out as one of the leading stablecoins utilizing an algorithmic mechanism, a feature it shared with the ill-fated UST stablecoin.
Following the widespread bearish downturn, the MakerDAO team swiftly implemented measures to overhaul the collateral mechanism supporting the DAI stablecoin. The subsequent transition to a hybrid mechanism proved to be a major catalyst for the ecosystem which, in turn, catalyzed MKR’s price trajectory.
Maker Surpasses Bitcoin and Ether in YTD Gains
After experiencing a collective surge in the first quarter and a relatively calm second, this current one has seen a general downward trend in the crypto market. The total market capitalization is now approaching $1.09 trillion, which is down approximately 10% from its July 2023 peak of $1.2 trillion.
Despite this overall decline, both Bitcoin and Ether have witnessed impressive year-to-date gains, with the former posting a 63% increase while the leading altcoin recorded a 40% surge. Several other assets have also demonstrated significant returns, largely driven by specific catalysts related to each.
One noteworthy example, according to the latest CoinMetrics report, is MKR, which has rallied by an impressive 185% year-to-date (YTD). In fact, MKR surpassed the $1,500 mark on October 1st for the first time since May 2022.
The report explained that the surge in MKR’s value can be attributed to the successful implementation of incentive schemes aimed at increasing the supply of Dai. This was achieved through an increase in the Dai Savings Rate and by capitalizing on the allocation of US T-Bills by the DAO.
MKR’s Network Activity Soars
In addition to MKR’s price action, the active addresses hit a 10-week high in tandem. Supporting the climb, more than 65 active addresses were added in ten days alone from September 17-27.
Moreover, the transaction volume has also reached levels not seen since last May, which is essentially indicative of an increased user participation rate as the market improves.