- The Maker (MKR) token has seen a substantial price boost, registering a 23% surge on the weekly top gainers’ chart.
- Spark Protocol’s multichain approach and Andreessen Horowitz’s activity on Coinbase are key influences driving the MKR price surge.
Altcoins have been stealing the limelight recently with their impressive growth, and MakerDAO’s governance token, MKR, is no exception. In the past week, MKR has topped the charts, registering a 23% uptick and outperforming several leading cryptocurrencies in terms of price performance. The launch of the Spark Protocol project can be attributed as a significant factor fueling this surge.
Data from CoinMarketCap reveals a noteworthy 54% gain for MKR among the top gainers over the last month. Based on Lookonchain’s analytics, MKR has seen a stellar rise of approximately 20% in a single day.
Factors Fuelling MKR’s Surge
The surge in MKR’s price can be linked to Spark Protocol’s proposed multichain approach, which aims to expand its reach and implementation across multiple blockchain networks. Another significant player influencing the price is the famed venture capital firm Andreessen Horowitz (a16z). Lookonchain’s data suggests that a16z has been making considerable deposits of Maker tokens on the Coinbase cryptocurrency exchange, possibly with the intention to sell. This move has sparked market speculation regarding the firm’s intent and its potential impact on market dynamics.
Several other factors are propelling the MKR token. The Optimism Dai Bridge’s launch, a layer-2 scaling solution facilitating fast and cost-effective transfers of DAI between Optimism and Ethereum, has notably bolstered the price.
Moreover, the decentralized derivatives exchange dYdX and MakerDAO announced a collaboration to include DAI as a collateral option for margin trading. The synergy between Compound, a substantial DeFi lending platform, and MakerDAO’s DAI Savings Rate (DSR), which allows users to earn interest on their DAI deposits, has also positively influenced the project.
June witnessed two significant price jumps for MKR. On July 1, it leapt 21%, ascending from $687 the previous day to nearly $830. On July 3, the token’s value climbed an additional 8%, marking a three-month high of $929.87, a level not reached since March. As of writing, MKR trades at $1141.87.
Can the Bullish Trend Persist?
Signifying strong buyer influence, the RSI curve stays above the overbought region and makes a bullish crossover. The MACD indicator’s green bars and bullish crossover signal a promising outlook for the upcoming sessions.
As MKR’s price exhibits a clear uptrend, surpassing the initial $1000 barrier, the market appears to be in a bullish state with buyers seeking further increase.