- Maker’s native token, MKR, experienced a remarkable 50% rally in the past week.
- The Spark protocol’s expansion to the Gnosis chain and increased whale activity significantly contributed to MKR’s impressive performance.
In an exceptional display of resilience and strength, Maker DAO’s MKR token secured a spot in the limelight following an impressive rally that saw its value soar by over 50% within a week. This surge propels MKR into the coveted position of one of the week’s top-performing cryptocurrencies.
Driving Forces behind MKR’s Rally
MKR’s exceptional performance can be attributed to a series of favorable events within the past week. Foremost among these developments is the expansion of the Spark protocol to the Gnosis chain. This move is poised to enhance the utility and demand for the DAI stablecoin, given the Gnosis chain’s high degree of decentralization and more affordable transaction costs.
Furthermore, the deployment of the MKR repurchase contract and growth in fee capture significantly contributed to the token’s bullish momentum. As an indicator of its stellar growth, MKR’s price, which traded as low as $870 a week ago, bounced off its 200-day moving average and shot up to an impressive $1080.
MKR’s Bull Run and Potential Bear Encounters
While predicting whether MKR’s rally will persist or dissipate isn’t certain, certain metrics provide valuable insights. The token’s on-chain volume hit a new monthly high within the past 24 hours, hinting that retail buyers are showing strong interest at the recent high levels.
An increase in network growth, another important factor, also hit a monthly peak on July 3. Although it has since dwindled, approaching the lower monthly range, the whales’ purchasing activity has ensured that MKR retains most of its recent gains. An uptick in supply held by top addresses indicates that whales continue to buy at higher price levels, suggesting a strong short-term bullish outlook and potentially tempering any significant sell pressure.
MKR’s resistance against a potential downside largely rests on investor sentiment. If the broader crypto market continues to exhibit its bullish bias, MKR investors might be further incentivized to hold onto their tokens, thereby safeguarding the token’s recent gains. As the world of blockchain and crypto continues to evolve, MKR’s exceptional performance serves as a testament to the dynamic interplay of market forces, protocol developments, and investor behavior.