Why Maker’s RWA portfolio boost could distract traders from MKR’s state

Posted: September 28, 2023

• MakerDAO continues to expand its RWAs with the latest addition worth $101 million.
• A look at why RWAs are an important component of MakerDAO’s operations.

Tokenization of real-world assets (RWAs) is a segment that is expected to generate immense value in the WEB3 industry. MakerDAO is arguably one of the protocols that have been aggressively pushed into RWAs.

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MakerDAO’s heavy involvement in asset tokenization is perhaps one of the best indicators of its current position in the segment. It reportedly has over $3.1 billion invested in RWAs. Recent reports reveal that it added roughly $101 million to its growing portfolio.

MakerDAO once again added $101 million in RWA assets in the past 24 hours through Monetalis Clydesdale, BlockTower Andromeda, and New Silver. This is the seventh increase this month. Currently, the total RWA assets in MakerDAO have exceeded US$3.1 billion. https://t.co/Olej0fYTRB

— Wu Blockchain (@WuBlockchain) September 27, 2023

So, why is MakerDAO’s expanding portfolio an important development? Well, there are a couple of reasons why. First, it signals that there is robust demand for RWAs within the MakerDAO ecosystem. In other words, the network is growing in terms of utility and value.

The second reason is that RWAs represent real value and real demand. MakerDAO plays a critical role in facilitating access to assets or the equivalent value of assets that traditionally have limited accessibility. It is also in line with the vision of MakerDAO founders.

MakerDAO’s plan for the future

MakerDAO’s founders recently discussed the protocol’s future as well as RWAs during the Korea Blockchain Week. The founders believe that the sub-DAO strategy will allow the MakerDAO platform to tap into its full potential.

The co-founders also stated that the most critical part of the strategy will be implementing efficient tokenomics for the sub-DAOs. This will facilitate more value generation and facilitate more expansion into the Ethereum ecosystem.

At Korea Blockchain Week, @RuneKek and @pythianism discussed the rise of RWAs and laid out the vision for MakerDAO’s Endgame.

Full pic.twitter.com/q0Qx8DlfKF

— Framework Ventures (@hiFramework) September 26, 2023

MakerDAO’s rapidly growing RWAs portfolio already indicated that the protocol is doing something right so far. This has also trickled down into the MKR token’s performance. 2023 has been an interesting year for MKR holders given that it is one of the best-performing digital assets.

Read Maker’s [MKR] price prediction 2023-24

MKR maintained an overall bullish performance this year and it recently peaked at a new YTD high of $1,497. This price tag also represented a 16-month high and a 198% premium from its lowest price level in 2023.

Source: TradingView

A pullback might soon be on the cards for MKR now that it was oversold according to the Relative Strength Index (RSI). On the metrics front, we see that the 10-year Market Value to Realized Value (MVRV) ratio soared to a four-week high. This meant that a substantial number of buyers were now in profit. Active addresses also reached their highest monthly level in the last 24 hours.

Source: Santiment

On the other hand, the network activity metric was lower than it was roughly seven days ago. Perhaps an indicator that demand might be slowing down.