MKR surges 4% in 24 hours, is this why?
- MKR witnessed a sudden spike in interest over the last few days.
- Whale interest and the growth of the protocol could have played a role in this surge.
MakerDAO [MKR] has been one of the most prominent DeFi protocols in the sector. The recent surge in MKR’s price, marking a substantial 4.11% increase in the last 24 hours, has ignited curiosity among investors and analysts alike.
The question looming large is whether this surge is merely a fleeting uptick or a precursor to sustained long-term growth.
What’s behind the uptick?
The spike in MKR’s price is not an isolated event, rather, it mirrors the rising interest in MakerDAO’s ecosystem. Investors are keenly observing the protocol, and the governance token, MKR, has become a focal point for many.
Lookonchain’s data provided insights into the recent price movement, revealing the influence of whales in the MKR market.
Over the past week, three new whale wallets have actively accumulated MKR, withdrawing a substantial 11,610 MKR (equivalent to $18.6 million) from the Binance [BNB] exchange.
This strategic move by large holders raises questions about the potential impact of these whales on MKR’s short-term price dynamics.
3 fresh whale wallets have accumulated $MKR in the past week.
They withdrew a total of 11,610 $MKR($18.6M) from #Binance.https://t.co/L5FUpo5zdjhttps://t.co/e3l7GgINuxhttps://t.co/hZtLcQBNfx pic.twitter.com/K2JOgxGdqf
— Lookonchain (@lookonchain) December 31, 2023
AMBCrypto’s analysis of the broader network metrics showed a more nuanced picture. While Network Growth experienced a decline, signaling reduced interest from new addresses, the velocity of MKR surged.
This increase in Velocity, coupled with a notable uptick in the number of transactions, suggested an intensified level of activity around MKR.
Source: Santiment
Turning our attention to the financial fundamentals, MakerDAO appears to be on a path to substantial profitability. According to insights from Messari’s data, MakerDAO is projected to generate profits totaling $105 million in the coming year.
These estimates are based on the assumption of a 50% growth in DAI supply and a 0.5% reduction in interest rates by the end of 2024. This positive outlook underscores the potential for sustained financial success for both MakerDAO and MKR.
As MKR enjoys its surge, it’s crucial to contextualize its performance relative to other stablecoins.
How much are 1,10,100 MKRs worth today?
DAI, MakerDAO’s decentralized stablecoin, has notably held its ground amid the competitive landscape, showcasing resilience compared to other stablecoins like TrueUSD, BUSD, and USDD.
This success contributes to MKR’s allure, as the broader MakerDAO ecosystem continues to demonstrate robustness and competitiveness in the DeFi space.
Source: Santiment
