Amid the resurgence of the cryptocurrency market, smart contract platform Maker and its native token MKR have gone through some difficult times. MKR reached a yearly high of $4,070 in April before continuing its downward trend, falling to $2,440 in just one week.
Take a look at the protocol’s key indicators and observe noteworthy levels to gain insight into the potential price movements and actions of the MKR token in the near term.
Maker Protocol’s updated metrics show positive growth
Maker Protocol, known for its decentralized stablecoin DAI, recently released updated metrics highlighting its health and growth over the past month. post On the social media site X (formerly Twitter).
DAI, managed by MakerDAO’s decentralized blockchain, enables lending and borrowing of cryptocurrencies. The current DAI supply, which exceeds 5 billion DAI, is an important indicator that reflects the total amount of DAI created and in circulation.
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total value locked Represents the dollar value of assets locked within the Maker Protocol. Despite existing on one chain since its inception, Maker has locked approximately $8.76 billion, making it the fourth largest decentralized finance (DeFi protocol).
The Maker Protocol allows DAI to be minted by storing permitted assets in a Maker Vault. The ETH-C Vault type holds the largest share, with approximately $2.07 billion worth of ETH locked up.
To achieve a full MKR burn, system surplus must reach 50 million DAI. On the other hand, the Dai Savings Rate (DSR) represents the rate at which the Maker Protocol rewards users for locking their DAI within a DSR contract. The current DSR cost amounts to approximately 153 million DAI.
Currently, the protocol notes that most DAI remains within DeFi, with Externally Owned Accounts (EOAs) and DSRs serving as the best use cases, holding over 2.3 billion and 1.96 billion DAI respectively.
In terms of revenue generation, SparkLend D3M and Spark’s MetaMorpho D3M lead the way, generating approximately $155 million. annual sales Based on deposit APY. This highlights the importance of different collateral types and revenue streams within the Maker ecosystem.
Potential catalyst for MKR price?
Despite growth and investor interest in the Maker ecosystem, the upcoming endgame plana proposal to improve governance and token economics, is expected to act as a catalyst for the MKR token, potentially driving its price higher.
This proposal aims to build a self-sustaining balance called the Endgame State, envisioning a resilient ecosystem where the scope and complexity of the Maker Core no longer changes.
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Currently, MKR is trading at $2,612 and has experienced a slight decline of over 2% in the last 24 hours and around 8% in the last 30 days. CoinGecko data Additionally, recent trading volume has decreased by 4.7%, indicating that the token has a total of only $72 million compared to its market capitalization of $2.4 billion.
If the Endgame plan does indeed spark renewed interest in the token and acts as a catalyst for MKR, the next important hurdle to monitor in the near term is around the $2,660 level, which has hindered the token’s ability to surpass higher levels over the past few years. me.
It would also need to overcome the $2,710 and $2,760 resistance levels before potentially retesting the $2,845 resistance on a potential path back to the $3,000 milestone. Looking ahead, on the MKR/USD daily chart, the $2,905 and $2,950 levels act as the final hurdle before reaching $3,000.
It remains to be seen whether it will be added or not. Development Growth in key indicators combined with expected endgame proposals could stimulate significant bullish momentum for MKR, allowing it to overcome resistance levels and restore a bullish trend.
Featured image of DALL-E, chart from TradingView.com