- MakerDAO crypto price has been in a relentless bull run.
- The MKR token has jumped by over 125% from its lowest level in January.
- The coin has more upside to go in the coming months.
MakerDAO price has been one of the best-performing cryptocurrencies in the past few weeks. MKR token rose to a high of $1,140, which was about 125% above the lowest level since June. this year, giving it a market cap of over $1.1 billion.
Why is MKR price rising?
MakerDAO is the blockchain project behind Dai, the third-biggest stablecoin in the world after Tether and USD Coin. Dai has a market cap of over $4.5 billion and has consistently held on to its $1 peg. It is widely used and has been integrated in over 400 apps and services.
There are several reasons why the MKR price has risen even as its total value locked (TVL) has slipped recently. Data by DeFi Llama shows that MakerDAO has a TVL of over $5 billion, the lowest level since 2021. It is still the third-biggest DeFi platform after Lido and Aave.
First, Maker’s revenue has been in a slow upward trend in the past few months. The daily revenue rose from a low of $34.5k in September last year to over $300k on Tuesday. It has held above the $300k level in the past few days. Higher revenue for the platform is a good thing since it shows that the network is getting more active.
Read more: How to buy Ethereum..
Second, MakerDAO price has jumped after a number of important votes meant to improve the ecosystem. The most recent vote is meant to improve Spark Protocol. It proposes to increase the current D3M Debt Ceiling to 200 million DAI, enabling seamless onboarding of new users to the ecosystem, It also outlines a set of parameter changes to the WETH and DAI markets on Spark.
Third, the developers recently reduced fees in the ecosystem. As I wrote here, they reduced WSTETH-A stabilization fee from 3.74% to 3.44% and WSTETH-B from 3.49% to 3.19%, RETH – A stabilization fee fell from 3.74% to 3.44%.
MakerDAO price prediction
The daily chart shows that the MKR price has been in a strong bullish trend in the past few months. It has jumped by over 125% from the lowest level this year. Most recently, it moved above the important resistance levels at $975 and $1,000, respectively.
Further, the MACD has continued rising while the Relative Strength Index (RSI) has moved close to the overbought level of 70. Therefore, the outlook for the coin is bullish, with the next level at $1,300. A move below the support at $1,050 will invalidate the bullish view.
