Maker Price Archives

12th April 2024

DAI Circulation Approaches 5 Billion As MakerDAO Unleashes Key Updates

In a recent announcement on the social media platform X (formerly Twitter), MakerDAO, the Ethereum-based protocol responsible for issuing the DAI algorithmic stablecoin, provided insights into the performance of the Maker Protocol following recent changes.

Over the past few weeks, MakerDAO has implemented significant updates to the protocol and the DAI stablecoin.

Introducing the Accelerated Proposal and the direct deposit module (D3M) to Spark’s Metamorpho Vault has notably impacted the ecosystem.

Increased DAI Supply And Demand

Looking at key metrics that demonstrate the effects of these changes to the protocol, the DAI supply in circulation currently stands at nearly 5 billion, reflecting a growth of approximately 300 million over the past month. This growth indicates continued demand for the stablecoin.

On the other hand, the Dai Savings Rate has significantly increased since implementing the Accelerated Proposal.

Approximately 1.54 billion DAI are currently deposited in the Dai Savings Rate, of which approximately 976 million DAI are sDAI, representing an increase of roughly 400 million DAI in deposits.

The Maker Protocol’s total value locked (TVL) amounts to approximately $8.4 billion across various vault types. This TVL growth can be attributed to strategic deployments in D3M modules, significant contributions from Ethereum-based collaterals, and the integration of real-world assets. These developments have enhanced the protocol’s diversification and resilience.

MakerDAO Ethereum Vaults Thrive

A notable addition to the MakerDAO ecosystem is the Morpho DM3, which enables the Morpho Vault to mint DAI. Currently, the lending pool has deployed 200 million DAI.

According to the protocol’s post, this allocation is projected to generate approximately 50 million in annual income for the Maker Protocol, making it the second-largest core vault in terms of annualized fees. It will play a significant role in generating revenue and contributing to the Maker Protocol’s sustainability.

Among the Ethereum vault types within the MakerDAO ecosystem, the ETH-C vault stands out with the largest value locked in crypto collateral at approximately $1.88 billion.

This vault generates approximately $43 million in annual fees, underscoring its importance within the Maker ecosystem and contribution to the protocol’s revenue streams.

Another important component is the Spark D3M, which is supplied with around 970 million DAI. This module is projected to generate an annual income of approximately 28 million.

These recent changes have positively impacted the Maker Protocol. The increase in DAI supply, growth in the Dai Savings Rate, expansion of collaterals, and introduction of different vault types have contributed to the protocol’s growth and development.

MakerDAO

Despite the growth in the MakerDAO ecosystem, the native token MKR has experienced a continuous 5.9% price decline over the past fourteen days.

In the last seven days alone, the token has recorded a significant 17% price drop, resulting in its current trading price of $3,355.

However, despite the price decline, Token Terminal data reveals positive trends. The protocol’s market capitalization currently stands at $3.3 billion, reflecting a notable 28% increase over the past 30 days.

Additionally, trading volume for the MKR token has experienced a substantial surge, reaching $5.9 billion, representing a 119% increase over the same time frame.

Featured image from Shutterstock, chart from TradingView.com

2nd April 2024

MakerDAO Initiates Massive $600 Million DAI Investment In USDe And sUSDe

Decentralized Finance (DeFi) protocol MakerDAO is considering allocating 600 million DAI stablecoins to the USDe and staked USDe (sUSDe) protocols through the DeFi lending platform Morpho Labs. The proposed allocation aims to improve risk management and maximize user incentives in the DeFi landscape.

MakerDAO Sets Maximum 600 Million DAI Allocation

The Spark DAI Vault, launched in 2023 as a lending platform, experienced strong demand soon after its launch, according to MakerDAO’s announcement on the protocol’s governance forum.

Given the desire to keep liquidity risk at an acceptable level, MakerDAO proposes a greater allocation of DAI to the USDe pools, which can be immediately redeemed via Ethena (ENA), a synthetic dollar protocol developed on the Ethereum blockchain.

This reallocation also allows Ethena to retain a larger revenue share for their insurance fund, potentially improving the overall risk profile of MakerDAO’s Ethena allocation.

Furthermore, MakerDAO recommends focusing future allocations on the 86% and 91.5% Loan-To-Liquidity-Value (LLTV) pools, which have shown “higher efficiency” regarding borrow rates and user demand. While lower LLTV pools, such as the 77% and 94.5% pools, will continue to receive allocations, they will be proportionally lower than the two primary pools.

To mitigate potential insolvency risks and ensure a favorable risk-reward ratio, MakerDAO limits the total allocation to 600 million DAI. However, the Dividend Debt Mechanism (DDM) line parameter is set at 1 billion DAI to provide flexibility for future increases if constraints change.

In addition, MakerDAO recommends marginally increasing the funds deployed in the 77% and 94.5% pools to 10 million DAI each to ensure sufficient pool size for “efficient management of positions” and the calibration of interest rate models.

The recently unveiled Ethena points program for Season 2 introduces a $500 million cap on total eligible collateral for incentives on Morpho. If demand for DAI borrowing through the vault declines after this threshold is reached, the protocol states that Multisig can reduce allocations below $600 million to maintain a balanced supply/demand dynamic and align with expected collateral returns.

MKR Surges To Near Three-Year High

MakerDAO’s native token, MKR, hit a nearly three-year high of $4,074 on Sunday, which is 40% below its current all-time high (ATH) of $6,292 in May 2023. The token has pulled back nearly 2% and is currently trading at $3,717. It is consolidating above its next support level of $3,640.

Despite the retracement, MKR still boasts significant gains over longer time frames. It has posted a 25% gain over the past fourteen days and an impressive 80% gain over the past thirty days.

Demand for MKR tokens is evident as trading volume has increased to $274,659,607 over the past 24 hours, a substantial 40% increase from just one day ago, according to CoinGecko data. In addition, MKR’s market capitalization has seen a remarkable increase of nearly 100% over the past month.

Starting in March with a market cap of $1.8 billion, as of the most recent update on April 2nd, the market cap stands at $3.46 billion. This significant increase underscores the high level of interest in the MakerDAO protocol and its native token.

MakerDAO

Featured image from Shutterstock, chart from TradingView.com

22nd March 2024

MakerDAO Stakeholder-Focused Updates Drive MKR Price Up By 10%

Blockchain protocol MakerDAO (MKR) continues to see significant gains, maintaining a strong upward trend throughout the year. MKR has seen significant growth of over 358%, accompanied by positive metrics reflecting increased adoption and usage of the protocol.

In addition, upcoming voting initiatives aim to further increase the platform’s benefits for its stakeholders.

MakerDAO Announces Plans For Rate System Changes

In a recent announcement, MakerDAO stated that it closely monitors developments in the cryptocurrency market and has gained a better understanding of the impact of recent proposals.

As a result, the protocol is recommending the next set of changes to its rate system. MakerDAO emphasized that further adjustments will likely be introduced shortly, contingent upon market dynamics, such as prices, leverage demand, and the external rate environment encompassing centralized finance (CeFi) funding rates and decentralized (DeFi) effective borrowing rates.

The protocol further noted that the Maker rate system will be adjusted accordingly if the external rate environment continues to exhibit signs of decline.

Efforts are underway to update the rate system language within the Stability Scope, including developing a new iteration of the Exposure model. These updates aim to ensure that the system can adjust rates more gradually and effectively in the future.

Based on recommendations from BA Labs, a blockchain infrastructure provider, the Stability Facilitator proposes various parameter changes to the Maker Rate system, which will be subject to an upcoming Executive vote.

MakerDAO

As shown in the table above, the proposed changes include reducing the Stability Fee by 2 percentage points for various collateral types such as ETH-A, ETH-B, ETH-C, WSTETH-A, WSTETH-B, WBTC-A, WBTC-B, WBTC-C. In addition, the Dai Savings Rate (DSR) and the Effective DAI Borrowing Rate for Spark will also be reduced by 2 percentage points.

However, one active protocol user offered an alternative viewpoint, suggesting using the demand shock opportunity to expand the net interest margin. While agreeing with the proposed 2% interest rate reduction for borrowers, the user advocates for a larger 4% reduction in the DSR, which he believes will further benefit MakerDAO’s net interest margin.

Ultimately, the outcome of the voting process will determine whether these proposed changes are implemented and benefit the stakeholders of MakerDAO. Further decisions regarding rates and fees will be made based on the results.

Market Cap Skyrockets

According to data from Token Terminal, MakerDAO has demonstrated significant growth and positive performance across various key metrics over the past 30 days.

In terms of market capitalization, MakerDAO’s fully diluted market cap has reached approximately $3.07 billion, reflecting a notable increase of 40.9% over the past 30 days. The circulating market cap is around $2.82 billion, showing a similar growth rate of 41.1%.

MakerDAO

On another note, the total value locked (TVL) in MakerDAO has increased by 10.1% over the past 30 days to approximately $7.05 billion.

The token trading volume for MakerDAO has surged 126.6% over the past month, reaching approximately $4.35 billion. This increase in trading volume suggests heightened market activity and interest in the protocol.

In terms of user activity, MakerDAO has seen an increase in daily active users, with an increase of 32.2% to 193 users. On the other hand, weekly active users decreased by 22.6% to 783 users. However, monthly active users have shown a positive growth rate of 10.0%, reaching 2.88k users.

Short-Term Outlook For MKR

Regarding price action, MKR is currently trading at $3,158, reflecting a 4.8% growth in the past 24 hours, 10% in the past seven days, and an impressive 49% increase in the past fourteen and thirty-day time frames.

The token has encountered a support wall for the short term at $3,048. This support level is significant for the token’s growth prospects. Another key support level is at $2,884, which further contributes to the token’s short-term stability and potential growth.

MakerDAO

On the other hand, the nearest resistance level is observed at its 28-month high of $3,321. This level represents the highest point reached by the token since November 2021.

Featured image from Shutterstock, chart from TradingView.com

15th January 2024

Whales Accumulating Maker And Aave, Path To 2024 Highs?

On-chain data suggests that whales are accumulating large amounts of Maker (MKR) and Aave (AAVE), two leading decentralized finance (DeFi) tokens. This accumulation trend coincides with a broader cooling-off period in the crypto scene days after the United States Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs.

Whales Accumulate MKR And AAVE

According to ScopeScan data, Anchorage Digital, a digital asset custody firm, purchased a significant amount of MKR on January 15. The firm acquired 12,103 MKR tokens, valued at approximately $24.7 million, from Coinbase, a leading crypto exchange in the United States.

Two whales, “0xbb5f” and “0x4a7,” also accumulated large quantities of MKR and AAVE. Specifically, “0xbb5f” bought 50,000 AAVE and 2,452 MKR worth around $5.03 million and $4.95 million from Binance, a leading cryptocurrency exchange. Meanwhile, 0x4a7 purchased 39,000 AAVE and 2,350 MKR, valued at approximately $3.95 million and $4.75 million, also from Binance.

Whales accumulating Maker and Aave | Source: Scopescan

These whale purchases signal a strong belief in the long-term potential of MKR and AAVE. Maker and Aave are two of the world’s leading decentralized lending and borrowing protocols across DeFi. MKR serves as the governance token for MakerDAO, which also manages the DAI decentralized stablecoin. On the other hand, AAVE is the governance token of Aave, a top decentralized lending platform.

According to the latest DeFiLlama data, Maker and Aave have total value locked (TVL) of over $8.4 billion and $7.3 billion, respectively.

Top DeFi protocols | Source: DeFiLlama

Notably, whales are accumulating MKR and AAVE when the DeFi scene is recovering following the sharp contraction from 2022. The industry manages over $56 billion, with Ethereum hosting more liquid DeFi protocols, including Lido DAO when writing in mid-January 2024.

Will Maker and Aave Rally To New 2024 Highs On Recovering DeFi?

Last year, MKR and AAVE were among the top-performing DeFi tokens, with MKR rising by over 200% and AAVE appreciating by more than 150%. Protocol-specific fundamentals, including the launch of Spark in Maker, partly drove this strong performance.

Aave launched the GHO stablecoin and the Lens protocol on the Ethereum sidechain, Polygon. Moreover, expectations of the spot Bitcoin ETF forced aggressive traders to consider top DeFi protocols, lifting altcoins.

As whales accumulate, there is more headroom for these tokens to grow. Presently, AAVE and MKR are lower, based on their respective performance in the daily chart. However, overly, the uptrend remains. To illustrate, MKR is within a bullish breakout formation with a critical support level of around $1,560. Any surge past $2,300 might ignite demand, lifting the token to new 2024 highs.

28th October 2023

After A 170% Spike, Is The Maker (MKR) Dream Rally Over?

After rallying over 170% from June 2023 lows, there are signs that Maker (MKR) bulls are losing momentum, looking at price action and decisions by various whales acting via an intermediary. At spot rates, MKR is changing hands at near 2023 highs but is down 16% from October highs.

Maker (MKR) Is Selling Off: The Bull Run Is Over?

MKR is dumping at an unexpectedly faster pace, reversing gains posted in early Q4 2023, a concern. According to The Data Nerd, Falcon X sent 5,690 MKR worth $8.52 million to multiple exchanges, mainly OKX and Binance, at an average price of $1,497.

Falcon X deposits MKR to exchanges| Source: The Data Nerd on X

Typically, whenever crypto whales begin sending tokens to centralized ramps, as currently is the case, it can be interpreted as bearish. That whales are moving their coins to exchanges could indicate that they are planning to liquidate and exit their position. Subsequently, this can dent sentiment, forcing the token to dump.

However, the timeliness of the transfer also matters. In some instances, tokens can be moved to exchanges and interpreted as bullish. This is because, depending on the situation, whales could move them to provide liquidity for other traders.

This can be the case with Falcon X. The platform provides institutional investors access to liquidity and execution services. Notably, Falcon X has, in the past, been used by other crypto exchanges and liquidity providers to offer other services. Since it acts on behalf of institutions and whales, it cannot be ascertained which of its clients is selling MKR.

As of October 27, The Data Nerd statistics show that the platform holds 10,150 MKR worth $14.17 million at spot rates. Following the transfer, the tracker also shows that MKR is down 4%.

The “End Game” Pumps MKR To New Highs, A Pull Back Incoming?

Presently, MKR remains under pressure. As mentioned earlier, the token, though in an uptrend, rallying 170% in four months, is down 15% from October’s peaks. At the same time, there is a double top, a technical formation that may signal a local top.

This pattern will only be invalidated if there is a sharp expansion above $1,650. Conversely, losses below $1,350 at the back of high participation levels could catalyze the sell-off.

In May 2023, MakerDAO, the issuer of MKR–the governance token of the underlying borrowing and lending protocol, announced the launch of the “End Game.” Herein, the protocol plans to deploy on its independent blockchain, introduce new features, and launch two tokens.

In addition, Maker has introduced a smart burn mechanism that involves purchasing MKR tokens from the open market and burning them without needing to close any collateralized debt positions (CDPs).

26th September 2023

Maker (MKR) Price Continues to Climb Higher Level, Will It Surpass $1500?

Maker DAO’s MKR has recorded a big push amid the slight uptick in the broader cryptocurrency market. Yesterday, September 25, the token rose from a low of $1,265 to a high of $1,343.

Although most tokens struggle to recover, MKR consolidated on its upswing with an impressive 5% 24-hour increase. MKR trades at $1335, striding to conquer the critical resistance at $1,350.

Its latest strides show buyers are in control, and their activity could facilitate more gains for MKR. But is the bullish momentum strong enough to push MKR to the $1,500 price mark? Let’s find out.

MKR Stands Among Top-gaining Cryptocurrencies

MKR ranked number one among today’s top-gaining cryptocurrencies, gapping Chainlink and Bitcoin Cash by 2%. This comes while the overall crypto market cap recorded a slight uptick of 0.63%, with the trading volume down 4%, indicating a decline in trading activity. However, amid the sparse buying activities in the general market, MKR recorded a 47% increase in trading volume.

This observation depicts increased buy action in the Maker market. But while this increased buying strength could fuel the coin’s price rally, it’s important to identify the factors behind it.

The buzz around the new proposal to deploy Spark Protocol on zkSync Era Mainnet has boosted investor sentiment. This proposal will include wETH, rETH, wstETH, and DAI as initial collaterals for borrowing on the Spark Protocol. Also, if adopted, the proposal will set a 2 million liquidity goal to spur Spark Protocol’s growth on zkSync.

Already, 100% of the Maker community voted yes to launching Spark on Gnosis Chain. This development makes DAI, Maker DAO’s stablecoin, the native gas token of Gnosis Chain. In addition, it allows users to earn increased yield when lending their DAI tokens.

Given this benefit, this development yielded positive sentiment in the Maker ecosystem. This positive sentiment must have translated into increased demand for MKR, the governance token of the Maker protocol, a plausible reason behind the surge in trading activities.

MKRUSD price chart

MKR Strives To Conquer The Key Resistance Level: Is $1,500 Possible?

The daily chart shows that MKR has formed two consecutive bullish candlesticks around the $1,300 price. This set-up depicts high token demand and increased buying strength around this zone.

The increased buy actions have pushed MKR above a key support level of $1,086 and a critical moving average of $1,166. But, the bulls met strong opposition at the $1,354. The sell activities from profit-taking traders, evident in forming two bearish candlesticks at this level, hinder further strides. Furthermore, MKR has remained a few pipes below $1,354 since opening today’s trading session at $1,338.

However, the Relative Strength Index, which increased from 63 to 64.97, approaching the overbought area, signals rising buying strength. It suggests that more buyers are entering longer positions, ready to counter the selling pressure resisting rally.

Suppose buyers maintain the ongoing momentum; a breakout above $1,354 and a move towards $1,500 before the day ends is possible.

31st August 2023

Maker (MKR) Unleashed: Price Soars 12% In One Day – What’s Behind The Surge?

In anticipation of the announcements made by the Ethereum-based Decentralized Finance (DeFi) lending platform team, the price of Maker (MKR) has experienced a remarkable surge of over 12% within hours. Now, what do these developments entail, and how will they impact the future of Maker?

Maker Empowers SubDAOs?

On August 28th, the Maker team made a significant announcement regarding their plans to introduce SubDAOs in South Korea. This move represents a critical evolution for MakerDAO, marking the “final effort” to unlock the potential of Decentralized Autonomous Organizations (DAOs).

According to the announcements made on August 28th, introducing SubDAOs is expected to streamline, innovate, and strengthen the Maker ecosystem, paving the way for increased opportunity and growth.

SubDAOs, which stands for Subsidiary Decentralized Autonomous Organizations, are expected to play a pivotal role in the next phase of MakerDAO’s development. These entities will leverage liquidity allocation from the Maker Protocol, exploring various yield opportunities across the financial landscape.

From decentralized finance protocols to real-world asset solutions, SubDAOs aim to harness the potential of diversified investment strategies.

Per the announcement, this presents a unique opportunity for Korean crypto leaders to engage with the forefront of DeFi developments. Participants will have the chance to be part of forming their own SubDAO or contribute to existing ones.

This involvement offers insights into the success story of Spark Protocol, the first yield product incubated by a future SubDAO. Spark Protocol has demonstrated significant achievements, such as boasting high liquidity, industry-leading borrowing fees, and managing hundreds of millions in liquidity.

Additionally, the event encourages forging connections between leaders in centralized finance (CeFi) and decentralized finance. These connections are expected to help bridge the South Korean community to SubDAO token acquisition and farming opportunities, fostering collaboration and growth within the ecosystem.

The move into SubDAOs signifies MakerDAO’s commitment to cultivating innovation across the industry. Participants can explore “cutting-edge” decentralized finance protocols and real-world asset solutions.

The MRK Rally, How Close To A New Annual High?

The recent announcements have sparked a surge in MKR’s price, following a decline that began on August 2nd, which coincided with the token reaching its yearly high of $1,371.

Subsequently, MKR experienced a drop, reaching a low of $984 and breaching the significant psychological level of $1,000 and its 50-day Moving Average (MA), which had previously provided substantial support for the token.

However, with the recent announcements and the excitement surrounding the protocol’s new phase and increased liquidity entering its ecosystem, MKR has surged by an impressive 12% within 24 hours.

Currently, MKR is trading at $1,170, surpassing and regaining its 50-day MA, which has played a pivotal role in driving Maker’s rallies throughout the year. Moreover, according to Token Terminal data, MakerDAO’s Total Value Locked has reached $5.16 billion, indicating a 3.03% uptrend in recent days.

Considering these developments, the question arises: Is MKR poised to reach a new yearly high?

During MRK’s rally, the token reached as high as $1,230 but encountered a strong resistance wall at that level. However, suppose the protocol’s developments continue to attract liquidity, and MKR bulls can defend its 50-day MA as support, while further consolidating above the $1,260 level.

In that case, there is a possibility that, in the coming months, MRK could achieve a new yearly high above $1,375 and even touch the $1,400 level, a threshold not reached since May 2022.

Maker

Featured image from iStock, chart from TradingView.com