Maker price climbs 16% in a week, outperforming other altcoins with increasing DAI supply

• Maker price climbed 16% over the past week and 1% on the day. 
• The altcoin continues to outperform most cryptos as it works towards doubling revenue through an increase in DAI supply. 
• MKR price gains are likely sustainable as supply held by top addresses continues to grow while total supply on exchanges is largely unchanged.

Maker price has increased 16% over the past week, emerging as one of the best performing altcoins in the ecosystem. The Ethereum-based DeFi token is used in the generation of the stablecoin DAI.

The supply of the token held by top addresses is gradually increasing since September 6, suggesting that MKR's recent price gains are likely to be sustained.

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MKR holders expect doubling of revenue soon

Maker’s lending platform allows users to lock their Ethereum tokens into smart contracts and mint the stablecoin DAI. As DAI supply increases, it increases the revenue for Maker, acting as a bullish catalyst for the token.

MKR price climbed 16.83% over the past week on Binance. In the same time frame, supply of the stablecoin DAI increased 23%, or by $1 billion. A large part of Maker’s revenue is spent on growing the supply of the stablecoin. The current supply of DAI puts Maker’s annualized revenue at $181 million. Once DAI supply doubles, it will likely also double Maker’s revenue as the two are highly correlated.

Analysts will closely monitor MKR revenue and the token’s gains over the next few months to identify further catalysts. 

On-chain metrics also support MKR price gains

Between September 6 and 20, MKR token’s supply on exchanges remained largely unchanged. Over the same time period, MKR held by top addresses as a percentage of the total supply increased from 45.11% to 45.65%. A gradual increase in the supply held by large wallet addresses, accompanied with no increase in the total supply on exchanges, implies that whales are choosing to hold their MKR tokens instead of dumping them on centralized exchanges. 

MKR supply held by top addresses vs supply on exchanges vs price

This metric supports the thesis of a MKR price rally as long as supply on exchanges is relatively stable. An uptick in the token’s total supply on exchanges could signal an increase in selling pressure on MKR and a subsequent decline in price. MKR price is $1,302 on Binance at the time of writing.

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