Interesting times ahead for MKR as MakerDAO teams up to support real-world assets in DeFi. MKR struggles to hold a rally after encountering resistance.
The idea of including real-world assets (RWAs) received some attention during the 2021 bull run. However, regulatory concerns and the onset of the bear market later in the year slowed any progress in the segment. A similar trend could start this year and MakerDAO could lead that attack.
Realistic or not, here is MakerDAO’s market cap in terms of BTC
According to Messari, RWAs represent an asset class worth millions of dollars. This makes it an attractive segment that is unlikely to be ignored. Messari also revealed that MakerDAO is one of several DeFi projects already working to capitalize on growth opportunities in RWAs.
Real world assets (RWAs) are a multi-trillion dollar asset class, but DeFi’s current exposure is only about $356 million.@BlockTower Credit benefits from this limited exposure through its partnership with @MakerDAO and @centrifugebringing $220 million in RWAs to DeFi. pic.twitter.com/Kgm4FCjUnJ
— Messari (@MessariCrypto) January 21, 2023
According to Messari’s analysis, partnerships between MakerDAO, Centrifuge and Block Tower could bring in as much as $220 million for DeFi. If MakerDAO plays its cards right, it can tap into a market that can generate more value for MKR.
MKR price action
MKR managed to rally as much as 48% from the beginning of January to its latest monthly high. However, it has encountered a lot of resistance near the $740 price range, indicating that the bulls are losing momentum.
MKR investors are probably wondering if it will overcome the current support level or give in to the bears. One of the reasons for this is that the price shows relative weakness as observed in the RSI. The MFI also reveals that money has flowed out in recent days.
Cash outflows suggest selling pressure is beginning to manifest. This reflects the current market sentiment which indicates that investors are shifting towards a bearish outlook. In particular, the weighted sentiment metric has fallen since January 19.
In terms of on-chain activity, the number of daily active addresses registered a lower peak on January 21 than in mid-January. This means there is less trading activity now than mid month. Perhaps an indication of declining demand. The network growth shows a similar result.
How much are 1,10,100 MKRs worth today?
Here’s something interesting about MKR’s selling pressure. According to the distribution statistic, addresses with between 100 and 10,000 coins contributed the most to the selling pressure. This is important because it means they have a big influence on price direction.
Despite this, the same distribution statistic shows that some higher whale categories have accumulated. This information reflects MKR’s resistance to a larger pullback.
This post MakerDAO’s partnership with Centrifuge predicts this for MKR holders
was published first on https://ambcrypto.com/makerdaos-partnership-with-centrifuge-predicts-this-for-mkr-holders/