Research Summary
The report discusses Maker, a decentralized protocol on Ethereum, its potential growth, and the factors contributing to its undervaluation. It also highlights Maker’s revenue generation, treasury holdings, and the total value locked on its platform.
Key Takeaways
Maker’s Performance and Valuation
- Revenue and Treasury Holdings: Maker is generating over $30 million per month in revenue and holds more than $5 billion in its treasury. Despite these impressive figures, its fully diluted valuation is less than $2 billion, suggesting potential undervaluation.
- Total Value Locked (TVL): Maker has more than $8 billion of TVL on its platform, indicating a high level of user trust and engagement with the protocol.
Maker’s Stablecoin Development
- Development of $DAI Stablecoin: Maker is developing the $DAI stablecoin, which is the main source of its revenues. The $DAI is designed to maintain a stable peg to the U.S. dollar, providing a reliable and stable asset in the volatile crypto market.
Competitor’s IPO and its Impact
- Circle’s IPO: Maker’s centralized competitor, Circle ($USDC), has recently filed for an IPO in the USA. This could validate stablecoins and drive their mainstream adoption, potentially benefiting Maker.
Upcoming Developments
- Upcoming Developments: Maker is planning several developments, including an updated $MKR tokenomic structure, an ecosystem rebrand, and the implementation of the “End Game” strategy. These could serve as catalysts for Maker’s growth.
Actionable Insights
- Monitor Maker’s Developments: Keep an eye on Maker’s upcoming developments, including its tokenomic structure update, ecosystem rebrand, and the implementation of the “End Game” strategy. These could significantly impact Maker’s performance and valuation.
- Assess Impact of Circle’s IPO: Evaluate the potential impact of Circle’s IPO on the stablecoin market and Maker’s position within it. The IPO could validate stablecoins and drive their mainstream adoption, potentially benefiting Maker.
- Consider Maker’s Revenue and Valuation: Consider Maker’s impressive revenue generation and treasury holdings in relation to its relatively low valuation. This could suggest potential undervaluation and room for growth.
