Cryptanalysts AlfaBlok have published a report which states that the number of Dai in circulation must increase by more than 70% each year for MakerDAO (MKR) to maintain its current capitalization of about 350 million USD.
According to the AlfaBlok model published on May 5, Dai will have to supply several trillion units by 2040, which is above the current supply of about 100 million.
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The analysts said they had conducted „a fundamental analysis of this decentralized business based on discounted profit flows“ and concluded that the market is „very low“:
„The bottom line is that the current valuation is very aggressive growth rates of over 70% + increase in the Dai circulation per year to the trillions of Dai in circulation, so the current valuation makes sense.
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AlfaBlock said this was possible, but difficult:
„So far, Dai’s lawsuit has clearly been there. The big challenge is still to increase the supply structurally so that it can reach hundreds of billions Dai the sole exchange, when it declared, the crypto tokens, $190 million at quadrigacx, decred has been in circulation over the next decades.
To achieve a circulating bid, AlfaBlk speculates that real estate, presumably in tokens, may have to become an accepted form of collateral.
„There are over 170 billion properties in the world today, so this should be mechanically feasible,“ the report says.
As an alternative, the report discusses the possibility that the Protocol could break its link and work with insufficient collateral.