Maker (MKR), the governance mark of decentralized finance (DeFi) lender MakerDAO, is nearing its highest price since last May, buoyed by rising protocol profits and accumulation by large investors.
The cryptocurrency rose nearly 5% to $1,320 in the past 24 hours, approaching its early August high of $1,366, CoinDesk price data showed. If that level is surpassed, the price would rise to a 16-month high.
MKR has easily 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, is up less than 10%.
The surge came as MakerDAO, which issues the $5.5 billion stablecoin DAI, increasingly invests its vast reserves in U.S. Treasuries, taking advantage of high interest rates in traditional bond markets.
The protocol’s annual revenue has quadrupled since the beginning of the year to $185 million, while estimated annual profits have increased from $39 million to $58 million, according to a Makerburn Dashboard. MakerDAO also introduced a 5% reward for DAI last month to drive demand for the stablecoin. Are delivery has increased by $1 billion since the beginning of August.
Two major crypto investors – also known as whales – collected MKR this month, says blockchain sleuth Lookonchain noted, a sign of improving sentiment towards cryptocurrencies. One entity bought a total of $1.95 million worth of MKR as of September 4, while another whale bought $1.63 million of the token this week.
Crypto hedge fund Ouroboros Capital said the price surge is likely to continue due to rising DAI supply and rising revenues, adding that a bullish technical chart pattern points to a $1,600 price target.
“Beautiful cup and handle shape in MKR. Still believes it will test $1.6K,” the hedge fund said on the social media platform X, formerly known as Twitter, posts.