MakerDAO’s brand strategy was in one of its most active states.
MKR’s momentum could eventually turn bearish.
Decentralized Finance Protocol and Builders of DAI, MakerDAO [MKR] have been involved in burning its tokens as part of its tokenomics strategy. This fascinating activity has been taking place since 2018. And in turn has helped MKR holders increase their voting power and reduce spending costs.
Realistic or not, here it is MKR’s market cap in terms of BTC
Fire in the system
While the buyback and burnout process may not have yielded remarkable results in recent months, the recent trend seems to have changed. According to Makerburn. comapproximately 5.8 billion MKR tokens had been burned at the time of writing.
This was an improvement over 2022 levels. Hence collateral under Maker Protocol increased supply with the increasing percentage of locked assets. This also implied that supply and demand of DAI would have become more balanced.
Meanwhile data from DeFiLlama showed that the MKR Total Value Locked (TVL) remained in second place despite rising 1.79% in the past 24 hours. As of this writing, Lido Finance [LDO] was ahead by a difference of nearly $1 billion.
Be that as it may, the increase meant the overall health of the Maker Protocol was excellent, while active users were exceptionally robust.
Regarding the MKR price, CoinMarketCap showed that its 30-day performance was 22.43%.
By development activity, Sanitation revealed that Maker had improved consistently up to 17.02. This could be attributed to the several proposals recently approved. Hence, the MakerDAO development team was in one of the highest stages of vibrancy.
In addition, the 24-hour active addresses had also improved to 292. This indicated that an excellent number of public interactions and speculation around the MKR token was relatively rampant.
Read MakerDAOs [MKR] Price prediction 2023-2024
High volatility for MKR
According to the price action, the daily chart showed that MKR’s volatility was well above the contraction from the first weekend of January.
At press time, the Bollinger Bands (BB) showed that MKR was neither in an oversold nor an overbought region. This was because the price of MKR $665.12 was outside the upper and lower bands.
In addition, indications from the Moving Average Convergence Divergence (MACD) showed that MKR’s momentum was mostly bullish. However, the MACD tended to fall towards the bears as the orange dynamic line approached a level to surpass the blue line.
lIn such a case, sellers would regain control of market momentum. So there is a chance that the MKR price will drop from its current value.
This post Decoding MKR’s price action after MakerDAO’s brand activity peaked
was published first on https://ambcrypto.com/decoding-mkrs-price-action-after-makerdao-burn-activity-hit-highs/