The cryptocurrency rose almost 5% in the past 24 hours to $1,320, approaching its early August high of $1,366, CoinDesk price data shows. Surpassing that level would send the price to a 16-month record.
The surge happened as MakerDAO, which issues the $5.5 billion stablecoin DAI, is increasingly investing its vast reserve assets in U.S. Treasuries, benefitting from the high yields in traditional bond markets.
The protocol’s annual revenue has quadrupled to $185 million since the start of the year, while estimated yearly profit jumped to $58 million from $39 million, according to a Makerburn dashboard. MakerDAO also introduced a 5% reward for DAI last month to spur demand for the stablecoin. Its supply has increased by $1 billion since early August.
Two large crypto investors – also known as whales – have been accumulating MKR this month, blockchain sleuth Lookonchain noted, a sign of improving sentiment towards the crypto asset. One entity bought a total of $1.95 million worth of MKR starting on Sep. 4, while another whale purchased $1.63 million of the token this week.
Crypto hedge fund Ouroboros Capital said the price surge will likely continue due to rising DAI supply and revenues, adding that a bullish technical chart pattern points to a $1,600 price target.
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