The cryptocurrency market is under significant pressure, which in turn reflects on the activities of decentralized autonomous organizations (DAOs). Over the past week, DAO treasuries lost $3.5 billion, confirming negative trends in the industry.
Decline in DAO Treasuries Value
In the past week, DAO treasuries have decreased in value by $3.5 billion, a result of the overall decline in cryptocurrency prices. Currently, the total assets held by all DAOs stand at $14.6 billion, significantly down from $42.5 billion recorded in March 2024.
Decrease in Voting Activity
The reduction in treasury value has also affected voting activity. In January 2025, DAOs usually held around 1,500 votes, but by March, this number fell to 748, with only 73 votes taking place in April to date. This trend is linked to falling token prices, reducing incentives for participation in decision-making.
Trends and Issues of DAOs
Despite possessing significant assets, the functionality of DAOs is limited by the current market sentiment. Many DAOs are more focused on ideas than products, complicating their development. Some DAOs face issues of centralized voting, where the influence of large token holders outweighs that of smaller investors.
The drop in cryptocurrency prices and the decrease in participant activities negatively impact DAOs. In the face of market uncertainty, many organizations struggle with management and attracting new participants.
