Decoding MakerDAO's Performance and What Investors Can Do

While many investors are looking at crypto assets such as coins or tokens, we also need to keep an eye on DAOs. MakerDAO in particular – the project behind MKR tokens and DAI – has seen some intriguing activity lately.

Try to do MAKER with things

As of going to press, MKR was trading at $1,797.27, after falling 1.27% in the past 24 hours.

However, the statistics reveal something interesting. Despite the price still falling, weighted sentiment shot out of negative territory and rocketed to a euphoric high of 7.372. While this may seem like a positive sign, it’s important to keep in mind that sharp downward trends can sometimes follow such huge highs.

Source: Santiment

If we look at the network itself, we see an interesting trend when we look together at active addresses and development activities. Sharp declines in development activity between September 2021 and March 2022 largely coincided with a sudden increase in the number of active addresses.

With development activity back on the rise, active addresses are not only increasing, but also stabilizing.

Source: Santiment

Call time of debt

MKR’s press time price is a long way from its $6,000 high around the time of the May 2021 crash. In fact, MKR’s price has been in free fall since late 2021. Santiment insights noted,

“In OCT 2021, market participants saw that the price probably bottomed out and started going into debt and with prices rising, they became even more confident, creating more debt and driving prices up even further. Until debt creation stagnated. No new money is coming in to jack up the price… and down we went.”

Since Ether was also in a downtrend, it affected MKR investors and many others who invest in altcoins. Saniment Insights explained,

“In fact, the highest debt cluster at the top was seen on November 9, 2021, and no higher debt cluster has been seen since. The big boys and the retail industry are no longer going into debt at all.”

With top cryptos back in the red at press time, it remains to be seen if more debt clusters will form.

Make a check to Ukraine

AML analytics platform Coinfirm looked at the ERC-20 tokens donated to support Ukraine’s resistance to Russia. Of the $9 million worth of crypto sent to the country’s government on March 4, USDT was the number one choice.

However, the second most popular token was DAI.

the government of #Ukraine has received $9 million in support from more than 200 different #ERC20 tokenshttps://t.co/1aAml8KPc3 pic.twitter.com/7Lkr9Gh0ym

— Coinfirm (@Coinfirm_io) March 4, 2022