• MakerDAO’s Endgame proposal failed to revive the financial losses of the platform.
• Despite rising fees, there was a decline in Total Value Locked (TVL) and MKR price.
• MakerDAO’s daily fee currently stands at approximately $64.8 million and its cumulative fee has surpassed $147 million.
MakerDAO Struggles with Financial Losses
MakerDAO’s hopes for a turnaround fade as financial losses persist despite the introduction of their Endgame proposal in 2022. Rising fees have not been able to halt the decline in Total Value Locked (TVL) and MKR price. According to a recent Messari report, MakerDAO has been grappling with financial losses for 11 months now, which stands in stark contrast to its profitable period in 2021 and parts of 2022.
Endgame Proposal Fails To Reverse Financial Losses
The Endgame proposal sought to revitalize the MakerDAO ecosystem by diversifying its revenue streams and enhance resilience of DAI stablecoin through decentralization of its backing mechanisms. However, these efforts have not seen any desired turnarounds yet; resulting in further declines of MKR’s price.
MakerDAO Fees Rise Steadily
Data from Crypto Fees indicated that MakerDAO’s current daily fee generated was approximately $64.8 million while DefiLlama showed that its cumulative fee had surpassed $147 million – a modest improvement compared to previous days. This showed an overall steady increase in fees over the past few months but it was unable to reverse the downtrend of MKR’s price or TVL on MakerDao’s platform.
MKR Price Prediction 2023-24
It remains unclear if MakerDao will experience any significant turnarounds this year or next due to increasing competition from other DeFi platforms, especially those offering stablecoins with lower transaction fees than DAI stablecoin on MakerDao’s platform does.. Furthermore, external factors such as market conditions could also influence MKR prices going forward into 2023-24 which would affect TVL on MakerDao’s platform as well as total daily/cumulative fees collected by them too.
Conclusion
Overall, while it is still too early to tell if makerdao can bounce back from their current financial losses or not, it is clear that they need more innovative solutions that go beyond just raising fees if they are hoping for any significant turnaround anytime soon