MKRUSD 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

29th September 2023

MakerDAO Secures $6 Billion For Treasury Bill Investments As MKR Dominates 2023

According to a Bloomberg report, MakerDAO, one of the prominent decentralized lenders in cryptocurrency, has reaffirmed its decision to invest billions of dollars in US government bonds.

This strategic move has propelled its governance coin, MKR, to reach its highest level since April 2022, outperforming other major cryptocurrencies, including Bitcoin (BTC).

MKR has experienced a remarkable surge of 77% this quarter, emerging as the best-performing cryptocurrency of the year. Despite a modest decline of 3.9% to $1,452 on Friday, the coin has nearly tripled in value.

MakerDAO Doubles Down On Treasury Bonds

As per DefiLlama data, MakerDAO currently oversees $4.6 billion in assets. The rally of MKR can be attributed to MakerDAO’s 2022 decision to convert the backing funds of its stablecoin DAI into assets such as short-term US Treasuries and corporate bonds.

This strategic shift aimed to seek more stable yields amid the downturn in the cryptocurrency markets. Subsequently, MakerDAO passed a proposal enabling the investment of up to $6 billion in short-term Treasuries, doubling the existing limit.

Simon Peters, an analyst at investment platform eToro, suggests that the recent gains in MKR can be attributed to rising treasury yields following the Federal Reserve’s indication of keeping rates higher for longer.

However, signs of a potential slowdown in the MKR rally have emerged. CryptoQuant data reveals a gradual increase in MKR tokens held on centralized exchanges (CEX), indicating that some traders are preparing to secure profits from the recent surge.

Notably, the drop experienced on September 29 ahead of the monthly close marked the largest decline since mid-September.

According to Bloomberg, the trader enthusiasm for MKR has extended to DAI, MakerDAO’s stablecoin. DAI’s circulation has grown from a low of $3.9 billion on August 20 to $5.5 billion.

Furthermore, MakerDAO introduced a limited-time offer of an 8% annual yield to DAI holders, which, combined with the approval of the investment proposal, could potentially trigger a fresh wave of buying in short-term Treasuries.

Allan Pedersen, the CEO of Monetalis, a firm assisting MakerDAO in its investments, expressed that if the supply of DAI continues to increase, it could lead to a significant expansion of MakerDAO’s T-bill investments in a short time frame.

The developments surrounding MakerDAO’s investment strategy in US government bonds, which have propelled MKR to new heights, signify a calculated move to achieve stability and sustainable yields by the decentralized protocol.

MKR Hits 18-Month High

MKR has declined over 4.5% in the past 24 hours, causing the token to retrace to its current trading price of $1,452. However, over the last month, MKR has exhibited consistent gains across various time frames, with notable increases of 12%, 19%, and nearly 40% over the seven, fourteen, and thirty-day periods, respectively.

Furthermore, MKR has reached an impressive 18-month high, surging by 101% year to date and briefly peaking at $1,590 earlier on Friday.

MakerDAO

In the short term, safeguarding against an extended decline, MKR has two crucial support levels that bulls must defend. The first immediate support rests at $1,430, while the second support level, spanning two months, is positioned at $1,341.

Meanwhile, MakerDAO and its ecosystem appear poised for further gains with their investment strategy. With a few months remaining in 2023, there is a potential for MKR to conclude the year as the top-performing asset if the ongoing rally continues.

Featured image from Shutterstock, chart from TradingView.com

28th September 2023

Maker (MKR) Rockets To $1,500 With 15% Surge, Will This Run Continue?

The Maker token, MKR, has managed to break the $1,500 level with a sharp 15% rally as on-chain data shows MKR has seen high address activity recently.

Maker Has Outperformed Top Coins With 15% Rally In Past Week

While giants like Bitcoin have struggled recently, MKR has proven to be different as the coin has observed an impressive run of bullish momentum. Following the latest leg up in the asset’s rally, it has surged past the $1,500 level, a feat it hasn’t replicated since May 2022, almost a year and a half ago now.

The below chart shows what the asset’s recent rally has looked like:

Maker Price Chart

Out of the top 100 cryptocurrencies by market cap, only Chainlink (LINK) and Curve (CRV) have seen better returns than Maker’s 15% gains during the past week.

Even these two assets haven’t seen bullish momentum as consistent as MKR in the past month, though, as MKR’s superb 42% profits in the period notably outshine theirs.

Maker Active Addresses Have Hit A 10-Week High

According to data from the on-chain analytics firm Santiment, this sharp run in MKR has come alongside a surge in the cryptocurrency’s “active addresses” metric.

This indicator keeps track of the daily total number of unique Maker addresses that are taking part in some kind of transaction activity on the blockchain. This metric’s value can simply be looked at as the amount of traffic that the network is receiving every day.

When the indicator has high values, it means that a large number of users are participating in the trading activity of the asset. Such a trend implies that interest in the coin is high currently.

Now, here is a chart that shows how the active addresses metric has changed for MKR during the past month:

Maker Active Addresses

From the graph, it’s visible that the Maker active addresses have climbed up alongside the rally in the asset’s price. After the latest increase in the indicator, its value has hit 651, which is the highest observed in around 10 weeks.

Generally, for any surge to be sustainable, it requires continued participation from a large amount of traders. Rallies that aren’t accompanied by a sufficient rise in user activity usually run out of steam before long.

Since the latest Maker surge has seen an increasing number of addresses becoming active, signs could be looking good for its sustainability. As the price continues its run, though, some investors might be tempted to harvest the high profits that they have amassed.

In the same chart, Santiment has also attached the data for the exchange netflow, which shows that some inflows of $7.6 million just have occurred towards centralized exchange platforms, implying that profit-taking may already be beginning.

This is a relatively modest amount, but the analytics firm warns that inflows can be something to be cautious about, as they could lead towards at least a temporary top in the price.

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.

14th August 2023

Maker Large Holders Accumulate, MKR Rally To Continue?

On-chain data shows large Maker holders have accumulated recently, a sign that the rally could extend soon.

Maker Large Holders Have Continued To Expand Their Holdings Recently

According to data from the market intelligence platform IntoTheBlock, inflows to the wallets of the large MKR investors have been taking place for a while now. The “large holders” here refer to those investors who hold at least 0.1% of the cryptocurrency’s circulating supply.

In Maker’s case, this value would equal about $1.2 million. Thus, the only holders who would clear these criteria would be the sharks and whales, the largest entities on the network.

These investors generally hold some influence in the market, as they can move many tokens at once. Thus, the behavior of this cohort could be worth watching, as it may reveal answers about where the asset might be heading next.

One way to track the behavior of these humongous holders is through the “netflow” metric, which measures the net amount of MKR that these large investors are adding into or moving out of their combined holdings right now.

When the value of this metric is positive, it means that a net number of coins is entering into the supply of these investors currently, suggesting that they are participating in buying.

On the other hand, negative values could imply that this group may be selling as its members are transferring a net amount of the asset away from their wallets.

Now, here is a chart that shows the trend in the Maker large holders netflow over the last few months:

Maker (MKR) Large Holders Netflow

The above graph shows that the Maker large holders’ netflow has been almost entirely positive during the past few months. There were a few dips into the negative territory, but the net outflows weren’t significant in scale then.

In the past few weeks, there haven’t been any drops below the zero mark, suggesting that the large holders have only continued accumulating more MKR recently.

Something to note here is that a positive netflow doesn’t mean that there isn’t any selling taking place at all. Instead, it simply suggests that the accumulation is enough to cancel any distribution.

In the past couple of months, the cryptocurrency has seen an overall uptrend, which could be a consequence of the net buying these investors have been participating in.

Since this month has started, though, the asset has declined. Nonetheless, as the netflows have only remained positive throughout this decline, the large holders have been buying regardless.

This conviction from these large holders can naturally be a positive sign for Maker, as the asset could potentially continue its rally soon.

MKR Price

At the time of writing, Maker is trading around $1,200, up 4% in the last week.

Maker Price Chart

10th November 2022

Maker (MKR) Records 13% Gains Undeterred By Market Downtrends

MKR, the native token of the Maker Protocol, has recorded substantial gains despite the most recent market downturn. After news of FTX’s liquidity crisis rocked the crypto market, several coins have struggled to bag daily gains to no avail. However, MakerDAO’s governance token has experienced an impressive surge today. Specifically, MKR trades at $873 press time, gaining over 26% on the day.

Despite the huge jump in the day, Maker still hasn’t recovered its weekly losses. However, if its bullish trend continues, it might fully recover in a short time.

MKR Surges As Bullish Momentum Kicks In

After a steep drop and sell-off over the last day, bulls have succeeded in turning around the Maker’s (MKR) negative trend. MKR’s price increased by $177.40, or 13.64 percent, to $840 during this recovery. The main catalyst for the price surge is an increase in 1-day trading activities and market cap. Specifically, MKR saw a 27.26% increase in its market capitalization and a 15.37% surge in trading volume.

MKR’s gains were most felt in the DeFi sector of the Maker Protocol. According to a Token Terminal Intern on Twitter, the DeFi sector lost around 20% of its total value locked in the last 24 hours. This is unsurprising and expected due to FTX’s controversy. However, despite the downturn, Maker recorded an increase in its TVL. Precisely, Maker saw a TVL increase of 28% over the same period.

This increase results from the recent surge in borrowing activities on the platform. As per the thread, Token Terminal Intern noted that the top-three lending protocols, including Maker, facilitated $27B worth of trading volume. The account mentioned that the increase resulted from traders fleeing centralized exchanges due to the FTX collapse.

MKR’s price is currently hovering at $875. | Source: MKRUSD price chart from TradingView.com

What The Charts Say About MKR’s Movement

The intersection of the upper and lower Bollinger Bands is located at 780 and 615, respectively. The widening of the bands indicates a rise in trading activity, which may lead to a price breakthrough.

Since the market has broken out above the upper range, bulls appear to be in control, and this upward trend might continue for a while. The RSI is currently at 57.45, which has been quite constant over the past few hours. As a result, the MKR market shows signs of balance between buyers and sellers, suggesting the positive trend will continue.

The MACD line is still negative at -8. However, it has crossed over the signal line and is trending upward into positive territory. The histogram is trending upwards, supporting the current bullish pattern. As the MACD line rises above the EMA line, we may be certain that the MKR market will continue to rise.

Moving averages for 5 and 20 days are 749 and 698, respectively. This uptrend is further backed by the rise of market prices above both moving averages. The Coppock curve, which has just climbed from the negative zone to a value of 8, also implies sustained growth in the MKR market. Overall, the market is expected to stay positive, and major technical signs point to more gains coming up soon.

Featured image from Pixabay and chart from TradingView.com

4th October 2022

Maker (MKR) Continues Its Positive Moves, Neglecting Weekly Market Trend

Despite the general bearish trend in the cryptocurrency market at the moment, the Maker token continues to thrive. Maker is currently trading at $811.28 today. It represents an increase of up to 5.72% in the last day.

Despite positive moves in the last 24 hours, the current market sentiment is bearish and expected to persist until mid-October 2022.

The trading volume of MKR today stands at $47.47 million. It also currently ranks at number 55 on CoinMarketCap.

The price change in 24 hours is over $50. Currently: the 24-hour low stands at $752.01 while the high is $816.50.

What Is Boosting The Price Of Maker Despite The General Bearish Sentiments?

After the Ethereum merge, numerous predictions failed since the price of ETH decreased rather than increased. Miners were dumped for validators and lost out on profits. It led to many miners trading in their ETH just before the merge date.

The maker token is built on the Ethereum blockchain, a stablecoin that is soft-pegged to the US dollar.

The peg to the US dollar helped stabilize the token more in a volatile market. Maker is one of the pioneers in Decentralized Finance (DeFi). Users opt for decentralized exchanges because they are easy to use.

Also, users can partake in the governance of their tokens directly through voting. The flexibility on the platform is making more people adopt the token since Bitcoin and Ethereum prices are plummeting.

The high trading volume of Maker makes it ideal for day traders to make profits on it. The trading volume currently stands at $48,101,071.

MKR’s price is currently trading above $805. | Source: MKRUSD price chart from TradingView.com
MKR Predicted To Go Bearish Shortly

Market sentiments for MKR are strongly tipping the coin to go on a bearish run and halt its rally. The token is about to test the resistance levels of $960, $1060, and $1160. However, if the coin fails to break above $800, it is expected to rest on support levels of $600, $700, and $800.

Some experts believe that the prices can suddenly plummet despite the rally, with market forces being a strong determinant.

Market analysts are optimistic that Maker (MKR) has made enough progress to make buyers purchase more tokens and increase the price. However, if the investors refuse to buy more Maker tokens: a bearish reversal will most likely occur.

High volatility has been an issue for cryptocurrency assets in recent times. Technical and fundamental analysis of Maker price charts shows that it could be on the rise again.

The formation of a head and shoulder pattern between June and August 2022 indicates the possibility of a trend reversal.

However, it is unlikely that MKR will surpass its all-time high of $6339.02 on May 3, 2021.

Featured image from Pixabay and chart from TradingView.com