MakerDAO's MKR Token Gains Attention, Captures 40% of DeFi Profits

MakerDAO's MKR token has been gaining significant attention recently due to its strong performance and revenue-generating capabilities. The token has achieved an annualized revenue of $300 million and annualized profits of $72 million. MKR captures nearly 40% of all DeFi profits on Ethereum and is the third highest revenue-generating crypto app behind Ethereum (ETH) and Solana (SOL). It holds the largest portfolio of Real World Assets (RWAs) among protocols, with firms like Blackrock competing for allocation. Despite its strong fundamentals, MKR trades at a fully diluted valuation (FDV) of less than $3 billion, which some argue is undervalued. The token has outperformed Ethereum since the start of 2021, making it the only multi-cycle DeFi asset to do so. Market dynamics, such as the preference for newer projects and the circulating supply of tokens, influence its trading position compared to competitors like ONDO. The primary expense for MKR is the Dai Savings Rate, set at 8%. MakerDAO is also yet to rebrand tokens or redenominate the MKR token, which could influence future price action. MKR is considered by some as DeFi's first secular winner.