MKR sees positive movement while top coins decline.

MKR sees positive movement while top coins decline.

The Rising Tide: MakerDAO’s Soaring Price and Increased Investor Attention

Introduction

In the midst of a broader market correction, MakerDAO’s native token (MKR) has defied the odds and experienced a bullish surge, showcasing its resilience and potential. MakerDAO is a decentralized autonomous organization and its MKR token serves as the governance and utility token of the Maker protocol. This article will delve into the factors behind the recent price surge of MKR and the increased investor attention it has garnered.

Maker (MKR) Soars Amid New Governance Proposals

MKR has recently made it onto the top gainers’ list, standing out among a sea of red as many other cryptocurrencies fell victim to bearish market conditions. Its price has added over 3% in the last 24 hours, reaching $1,139.92 as of 9:25 am EST. Such a bullish momentum during a bear market trend indicates that there might be some unique catalysts supporting MKR’s rise.

The recent surge in MKR’s price can be attributed to increased ecosystem activities, particularly the Maker Governance’s ongoing vote to approve or reject the proposed changes to the Spark Protocol. These proposed changes, formulated by Phoenix Labs, aim to enhance the user experience within the Maker ecosystem.

Among the recommendations put forth by Phoenix Labs is the adjustment of the Wrapped Ether (WETH) Variable Rate Slope from 1% to 3%. This adjustment seeks to encourage healthy utilization of the DAI market, increase supplier return, and incentivize deposits. Additionally, Phoenix Labs proposes to set the DAI market loan-to-value and liquidation threshold to 0.01% and adjust the WETH market reserve factor to 5%. These adjustments would reduce the protocol fee on the ETH market, providing suppliers with a larger annual percentage yield (APY).

If approved, these changes would result in an increased debt ceiling for Spark D3M, raising it to 200 million DAI, and setting the DAI Market LTV/LT to zero. With the potential benefits these changes offer to DAI borrowers, market activity is expected to surge, increasing the demand for MKR as the Maker protocol utility token.

The voting process began on July 24 and has captured significant attention from members of the Maker community. As a result, trading activity around MKR has intensified, with community members eager to participate in the poll before the July 27 deadline.

Moreover, MKR’s status as the governance token of the Maker protocol and MakerDAO has driven trading activity and increased demand for the token. The higher trading volume further confirms the assumption that the ongoing poll has sparked heightened interest in MKR.

MKR’s price currently hovers at $1,139 in the daily chart. | Source: MKRUSD price chart from TradingView.com

Whale Alerts Draw More Investor Attention To Maker

Amidst MKR’s recent surge, there have been notable whale alerts that have added even more intrigue to the token. On July 26 at 9:25 am EST, MKR’s trading volume reached $121.71 million, a significant 47% increase from the previous day, according to CoinMarketCap data. Within the past 24 hours, MKR’s price fluctuated between a high of $1,172.12 and a low of $1,118.93.

The on-chain analytics platform, Lookonchain, observed substantial exchange inflow and outflow on July 25. According to their analysis, a whale sold 1,598 MKR, valued at approximately $1.8 million, after accumulating a considerable amount of tokens since June 22, when prices were below $1,000.

This whale had withdrawn 2,760 MKR, approximately $2.5 million, from Binance between July 7 and July 17, at an average value of $918 per token. The whale then unloaded these tokens when their price increased.

Although the whale dumping their MKR caused a temporary 2% decline in its price, it also highlighted the substantial investor interest in the token. In fact, this transaction drew more attention to MKR and contributed to its subsequent bullish trend. The ability of MKR to absorb the supply from the whale without significant issues underscores the high demand for the token.

Conclusion

MakerDAO’s MKR token has shown remarkable strength and resilience amidst a broader market correction. The ongoing governance vote and proposed changes to the Spark Protocol have ignited a surge in MKR’s price and garnered increased attention from investors. Furthermore, whale alerts have added an extra layer of intrigue to MKR, emphasizing the significant interest and demand for the token. As the blockchain industry continues to evolve, MakerDAO and its MKR token are positioning themselves as key players in the decentralized finance ecosystem, driving innovation and bringing about transformative changes.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Market

Kelp DAO Introduces KEP Token, Making Ethereum Restaking More Liquid

Kelp DAO's latest development, the KEP token, is set to enhance liquidity for EigenLayer Points, providing valuable o...

News

Shady Transactions Raise Eyebrows as $110 Million Evaporates from HECO Bridge and HTX Exchange – What in the Crypto World is Happening?

Recent blockchain breaches on the HECO bridge and HTX platform have been reported by security firms, resulting in an ...

Market

Ether.Fi will launch the ETHFI token on Binance Launchpool next week.

Liquid restaking protocols, such as Ether.Fi, utilize Ethereum's proof-of-stake blockchain to enhance the security of...

Bitcoin

Humorous and Professional Announcement from HTX Exchange

HTX, a popular digital asset exchange, has announced the resumption of deposit and withdrawal services for top crypto...

BlockChain

Poloniex Hack Reveals the Hilarity and Horror of Crypto Exchanges

Investor Justin Sun of Poloniex has confirmed an exploit and has taken action to reimburse affected users. He has als...

Bitcoin

HTX Crypto Exchange Bounces Back in Style

HTX crypto exchange resumes Bitcoin transactions after recovering from $30 million hot wallet hack.