For the first time since 2020, MakeDAO has crashed in its quarterly net income. The DAO is the autonomous community that governs the Maker Protocol. The project is based on the Ethereum blockchain and supports the lending and borrowing of crypto assets without a third party. MakerDAO has just witnessed a drastic drop in its 2022 third quarterly revenue. The decline in its income is linked to a plunge in loan demand and some liquidations. However, despite the pathetic situation, the community has high expenses within the quarter under review. Related Reading: Bitcoin Struggles To Break Past $19,500 As New Twist Surfaces, Here’s What To Expect A Messari analyst and co-author of ‘The State of Maker Q3 2022’, Johnny_TVL, gave insight regarding the situation. In his tweet, the analyst reported that the DAO experienced a revenue decline of over $4 million in Q3. Further, he noted that the value dropped by 86% from the second quarter. Such a revenue loss for MakerDAO has been recorded in the community’s report in the first quarter of 2020. Possible Reasons For Revenue Decline According to the analyst, a few liquidations in the system spiked the revenue drop. Also, he mentioned that weak loan demand is a contributory factor. The research analyst highlighted Ether and Wrapped BTC as the biggest earners of the protocol. However, he noted that they performed poorly in the third quarter. While BTC-based assets dropped by 66%, Ether-based ...
