Cycle Potential
12.6x
vs. bull target
Probability
75%
Success chance
Risk Level
3/10
Low Risk
Market Cap
$0
Volume
$520.57K
MakerDAO, rebranded Protocol in August 2024, represents the cornerstone of decentralized finance with $6 billion Total Value Locked and 28% share of DeFi lending market. The protocol maintains DAI stablecoin with $5-7 billion circulation while generating revenue through stability fees, liquidations, and Real-World Asset yields contributing $948 million (23.5% of reserves). MKR token holders govern the protocol with over-collateralization averaging above 150%. The May 2025 Endgame transition introduced SKY governance token at 1:24,000 MKR conversion rate, though MKR remains tradeable. December 2025 saw protocol fees exceed $40 million monthly with $27.71 million in monthly revenue.
MakerDAO's transformation into Sky Protocol positions it premier blue-chip infrastructure play in DeFi's institutional evolution. The protocol bridges traditional finance with crypto through $948 million in Real-World Assets (14% of reserves) while maintaining crypto-native governance. The deflationary SKY tokenomics via protocol fee buyback-and-burn creates scarcity dynamics grows, evidenced by 1.1 billion+ SKY tokens retired through buybacks August 2025 and a $40.5 million buyback executed December 3, 2025. The 10-year operational track record provides institutional confidence unavailable in newer DeFi protocols, with the protocol surviving the 2022 bear market when competitors like Terra/LUNA collapsed. Multi-chain expansion to Solana and Ethereum Layer 2 solutions positions USDS stablecoin for mass adoption beyond Ethereum mainnet constraints.
Solana and Layer 2 USDS deployment expanding multi-chain presence
Timeframe: Q1-Q2 2026
Continued SKY token buybacks and deflationary pressure
Timeframe: Ongoing through 2026
Bear market floor with 50% drawdown from current price.
Base case with 40% of bull scenario upside realized through moderate adoption.
Full 11.9x cycle potential realized with optimal market conditions and catalyst execution.
Score: 87/100 | Upside: 12.6x
Learn how we evaluate crypto fundamentals across 6 pillars.
View MethodologyDisclaimer: This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions. Cryptocurrency investments are volatile and carry significant risk.
MakerDAO (Sky Protocol) dominates decentralized stablecoins with $6B TVL and 28% DeFi lending share. DAI's $5-7B circulation (20% of stablecoin market) trails only USDC and USDT. The 10-year track record surviving Terra/LUNA collapse provides institutional trust unavailable to Frax, Liquity, or Reflexer. Diversified collateral ($948M RWAs, 32.9% stablecoins) offers stability pure crypto-collateralized competitors lack while maintaining decentralization versus fiat-backed alternatives. Revenue-driven deflation (1.1B+ SKY retired, $40.5M December buyback) creates unique scarcity. Multi-chain expansion to Solana and L2s competes with Circle's USDC deployments. Risks include governance centralization and RWA regulatory exposure. Competitive moat stems from institutional trust and network effects over technology.
MakerDAO stands's most established infrastructure protocol, uniquely positioning SKY holders to capture value from institutional DeFi adoption. The protocol's $6 billion TVL, 28% DeFi lending market share, and 10-year operational history provide unmatched credibility. December 2025 metrics showing $40+ million monthly fees and $27.71 million revenue demonstrate strong fundamentals supporting the deflationary buyback model (1.1 billion+ SKY retired). However, governance centralization concerns, Sky rebrand complexity fragmenting liquidity across dual-token systems, and $948 million RWA exposure creating regulatory vulnerabilities require careful consideration. For investors seeking blue-chip DeFi exposure with proven revenue models and institutional recognition, SKY offers compelling risk-reward, though position sizing should account for governance and regulatory uncertainties.
Additional RWA partnerships expanding institutional treasury yields
Timeframe: Q2-Q3 2026
SubDAO expansion with additional Stars following Spark Protocol success
Timeframe: 2026
Regulatory action against centralized stablecoins
Timeframe: Unknown
$104.95
