The status of the MVRV ratio showed that MKR was not yet overbought
Maker started burning demos when 55% of the community voted against the activity
According to a Jan. 11 report covered by Santiment, the MakerDAO [MKR] price would not yet be able to correct its trend, despite being one of the best performers of the year. The Maker Protocol governance token started the year at around $507.
Still, it registered a 20.74% increase in the past seven days, trading at $626.27 at the time of writing. Cumulatively it is 30 days performance was an increase of 5.92%. This was the case despite many other cryptocurrencies registering red during the same period.
Read Creators [MKR] Price prediction 2023-2024
The path is not yet clear for bears
Usually, MKR’s bull trend could falter in no time given the market inconsistencies. But a remarkable reversal could be far from it. The Santiment report, which defended its position, stated that the trend of the market value to realized value (MVRV) ratio was responsible for the judgement.
At the time of writing, the 30-day MVRV ratio was 15.52%, despite being in the negative region on Jan. 3. The increase implied that MKR holders had made significant gains in recent months and were willing to sell.
Nevertheless, the on-chain market intelligence platform pointed out that MKR was not “dangerously overbought”. Consequently, bullish demands may not be over.
However, MKR volume over the past 24 hours has been subdued. At the time of writing, 24-hour trading volume was down 49.37%. This meant that the number of successful transactions on the Maker network decreased.
With regard to the Total Value Locked (TVL), information from DeFi Llamaclaimed that Maker could not have kept first place after losing it Lido Finance [LDO]. The MKR TVL gained 7.45% over the past seven days.
This left the TVL worth $6.45 billion – a $1.5 million difference from the LDO value. Still, the increase showed that investors were interested in the dApps under the Maker chain as they plunged into the protocols.
An increase of 597.31x on the charts IF MKR reaches Bitcoin market cap?
The candles burn at both ends
In the meantime, the Maker community voted to reactivate the MKR burn. The buy-and-burn model aims to mint new DAI when the stablecoin fluctuates against the dollar peg.
At the time of going to press, the pending voting results showed that 55% opposed burning an MKR. 30.68% chose to burn 0.5 million DAI, while 13.94% chose to have the community burn 3 million DAI. However, Maker had already started with one test run where an incredible number of MKRs have been burned since January 3.
This post MKR’s reversal may not be at stake as the fire test is the focus
was published first on https://ambcrypto.com/mkrs-reversal-may-not-be-on-the-cards-as-burn-trial-takes-center-stage/