- Maker DAO launched the Spark Protocol on Tuesday.
- Spark is a DAI-centered DeFi project with supply and borrow features for DAI and ETH.
Maker price crashed to the lowest level since March 7th even after major developments in the ecosystem. MKR crashed to a low of $639.96, which was ~35% below the highest point this year. This decline has also coincided with the retreat of other major coins like Bitcoin and Ethereum.
Maker launches Spark Protocol
One of the top cryptocurrency news on Tuesday was the launch of Spark Protocol by Maker. In a statement, Maker said that Spark will no be available to all DeFi users starting today. Spark is an end-to-end, DAI-centered DeFi protocol deployed on Ethereum’s network.
It will allow supply and borrow features for ETH, stETH, DAI, and sDAI. Also, the platform will focus on integrating existing products into the Maker ecosystem. This process has been made possible by Chainlink, the biggest oracle in the ecosystem. Chainlink is providing the prce feeds. In a statement, a VP of Chainlink said:
“The ongoing collaboration between Chainlink and the Maker ecosystem is a huge win for DeFi. Both Chainlink and Maker are pioneers in this space, and the work being done across both ecosystems will help to ensure the continued success of not only DeFi, but the broader industry as well.”
Maker is one of the biggest player in the DeFi ecosystem. According to DeFi Llama, Maker is the third-biggest player in the DeFi industry with a total value locked (TVL) of over $7.2 billion. Only Lido DAO and AAVE are bigger.
Maker is known for its DAI stablecoin, which has a market cap of over $4.8 billion. Dai is used to borrow and lend in the Maker ecosystem.
It is unclear why the MKR price crashed after the Spark Protocol launch. A likely reason is that it dropped because of the general weakness of the crypto industry.
Maker price prediction
The MKR price has been in a strong bearish trend in the past few days. It has moved below the 36.8% Fibonacci Retracement level on the four-hour chart. The coin has moved below the 25-day and 50-day exponential moving averages.
Maker has also moved below the important support level at $678.53, the lowest point on May 1. Further, it seems like the coin has formed a head and shoulders pattern. Therefore, there is a likelihood that the Maker price will have a bearish breakout as sellers target the next key support at $600.
