Despite the market dip, MKR, the Maker Protocol’s native coin, has gained significant value. Following the news of FTX’s liquidity crisis, other currencies have battled to make daily gains to no avail. However, MakerDAO’s governance token has seen a significant increase today.
MKR is trading at £737.02 as of press time, up more than 26% daily. Despite the massive daily gain, Maker has yet to recover its weekly losses. If its bullish tendency continues, it may recover in a short period.
Bulls have successfully reversed the Maker’s (MKR) negative trend after a significant decline and sell-off during the past day. During this recovery, MKR’s price increased by £149.77, or 13.64 %, to £709.16. The driving factor of the price spike is an increase in 1-day trading volume and market capitalization. MKR’s market value increased by 27.26%, while trading volume increased by 15.37%.
MKR’s benefits were most noticeable in the Maker Protocol’s DeFi sector. According to a Token Terminal Intern on Twitter, the DeFi sector lost around 20% of its locked value in the previous 24 hours. Because of the FTX controversy, this is unsurprising and expected. Nonetheless, despite the downturn, Maker’s TVL increased. Specifically, Maker witnessed a 28% gain in TVL during the same period.
This increase results from a recent boom in borrowing activity on the site. Token Terminal Intern highlighted in the conversation that the top three loan protocols, including Maker, enabled £22.79 billion in trade volume. According to the story, the surge was caused by traders fleeing centralized exchanges due to the FTX collapse.
Bulls look to be in charge of the market now that it has broken out above the upper level, and this upward trend may continue for some time. The RSI is now at 57.45 and has been relatively stable over the last several hours. Consequently, the MKR market shows indications of equilibrium between buyers and sellers, suggesting that the bullish trend will continue.
The MACD line remains negative, standing at -8. It has, however, passed the signal line and is now heading higher into positive territory. This uptrend is supported further by a rise in market prices above both moving averages. Overall, the market is projected to remain bullish, and significant technical indicators indicate more increases in the near future.