Price of the governance token of the MakerDAO protocol, Maker (MKR), increased by 6% in the last 24 hours. This increase appeared after a key Grayscale development.
The asset’s market cap has further advanced by 6% in the last 24 hours, it’s ranked 39th on CoinMarketCap. MKR’s spot trading volume witnessed an advance of 95%.
Meanwhile, the volume/market cap ratio of the MKR was 6.21%. Total supply was 977.6 Million MKR. This circulating supply stands at 930.33K MKR, which is 92.5% of the maximum supply.
The maximum supply is 1.0055 Billion MKR, resulting in an FDV of $2.12 Billion while the spot market cap is $1.964 Billion. It has a market cap dominance of 0.09%.
The Grayscale News That Could Benefit MKR
On August 13, Grayscale, a leading crypto asset manager, made an announcement on X from their official handle. Grayscale launched their new product, the MakerDAO Trust. This tick marks their second consecutive launch in August, following the recent investments in two other altcoins.
As per Grayscale, the new trust aims to give investors good exposure to MKR. This would allow the investors to access MakerDAO’s on-chain credit protocol and Real-World Assets (RWAs) on its ecosystem.
Interestingly, the impact of this development extends beyond MKR’s price. The on-chain data from a research website revealed a significant rise in active addresses on the network from 307 to 470. This indicates increased user activity in token transactions on the network.
Daily Active Addresses | Source: IXFI
Therefore, this suggests that MKR’s price surge was driven by the limelight of Grayscale’s investment and growing market interest. If this trend continues, MKR could record further gains.
Is $2,500 Next for Maker (MKR)?
Before MKR bounced back to $2,097, the price had experienced an approx 40% decline to $1,714. After a consistent decline over the last few weeks, a lower low swing appeared on the chart.
As per the earlier price structure, the continued degradation occurred from the second quarter. The decline formed the channel pattern. Following the most recent price action on the chart, the asset took support from the lower border of the wedge.
Depending on buyer sentiment, a rally could pop out if further strong bullish candles are formed, followed by a higher high swing.
Similarly, the rise could lead towards the upper border of the channel. Likewise, if MKR continues to rise and break above the wedge’s upper border, we might witness a shift in the price trend towards a bullish trend.
Looking at indicators, the price is poised to pierce the EMA bands from below (50-day and 200-day). The histogram has decreased, signifying a reduction in bear pressure; a bull cross could appear soon. Meanwhile, the RSI has been displaying a recovery ongoing from the oversold territory, where it recently flashed at 43.08.
Therefore, the targets are at $2390 and $2590, followed by the supports at $1880 and $1690.
Source: https://www.thecoinrepublic.com/2024/08/14/maker-mkr-active-addresses-rise-post-grayscale-news-whats-ahead/